Feed the Future Ethiopia Value Chain Activity - pdf.usaid.gov

USAID Year IV-Annual Report

FY 2020 (October 2019-September 2020)

Feed the Future Ethiopia Value Chain Activity Partnering with the Agricultural Growth Program

Feed the Future Ethiopia Value Chain Activity | FY 2019-2020 Annual Report

CONTENTS

Acronyms ........................................................................................................................................ i

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

Introduction ............................................................................................................................ 4

1.1 Activity Description ................................................................................................................... 4

1.2 Geographic Focus ....................................................................................................................... 5

Value Chain Activities ............................................................................................................ 6

2.1 Dairy ............................................................................................................................................ 6

Supporting cold chain .................................................................................................................................................................................. 6 Milk processing facilities ............................................................................................................................................................................. 8 Support for private Artificial Insemination (AI) service delivery .................................................................................................... 11 Dairy Technology Centers (DTC) .......................................................................................................................................................... 11

2.2 Meat & Live Animals ................................................................................................................ 12

Fattening enterprises................................................................................................................................................................................. 13 Feeding system development for livestock fattening ....................................................................................................................... 13 Export abattoirs.......................................................................................................................................................................................... 14 Local abattoirs ............................................................................................................................................................................................ 14 Support to DCA beneficiaries ................................................................................................................................................................. 14

2.3 Poultry ....................................................................................................................................... 16

Market linkages & agribusiness ............................................................................................................................................................ 16 Growth in production capacity due to investment ........................................................................................................................... 18 Capacity building ........................................................................................................................................................................................ 18

2.4 Maize .......................................................................................................................................... 19

Maize trade analysis ................................................................................................................................................................................. 19 Commercialization ..................................................................................................................................................................................... 20 Postharvest handling ................................................................................................................................................................................. 21 Fabricators trained on multi-crop thresher ......................................................................................................................................... 21 Commercialization of low-cost hermetic storage bags .................................................................................................................... 22 Seed ............................................................................................................................................................................................................... 23 Spray service provision ............................................................................................................................................................................. 24 FAW monitoring, reporting, and early warning system ................................................................................................................... 24

2.5 Chickpea .................................................................................................................................... 24

Market & trade analysis .......................................................................................................................................................................... 24 Domestic price trends............................................................................................................................................................................... 25 Export price performance ....................................................................................................................................................................... 25 Postharvest storage ................................................................................................................................................................................... 26 Seed production & marketing ................................................................................................................................................................ 26 Demonstration & field days .................................................................................................................................................................... 27


Support for CIGs ........................................................................................................................................................................................ 28 Spray service providers ............................................................................................................................................................................. 28

2.6 Coffee ......................................................................................................................................... 28

Cup of Excellence ...................................................................................................................................................................................... 29 Coffee Quality Institute ............................................................................................................................................................................ 30 Boot Coffee .................................................................................................................................................................................................. 31 Coffee nurseries ......................................................................................................................................................................................... 32

Cross-Cutting Activities ......................................................................................................33

3.1 Capacity Building ...................................................................................................................... 33

Market Information System (MIS) ........................................................................................................................................................ 33 Regulatory framework for dairy & live animals ................................................................................................................................ 33 DCA loan finance ....................................................................................................................................................................................... 34 Cooperatives & youth CIGs ..................................................................................................................................................................... 34 Agrodealers .................................................................................................................................................................................................. 35

3.2 Gender & Youth ........................................................................................................................ 35

Behavioral change...................................................................................................................................................................................... 36 Integrated Support for VCA Field Activities ........................................................................................................................................ 37 Technology transfer ................................................................................................................................................................................... 38 Internal gender equality and PYD training ......................................................................................................................................... 38 Gender-based violence campaign.......................................................................................................................................................... 38

3.3 Nutrition .................................................................................................................................... 38

Impact of COVID-19 on household nutrition ...................................................................................................................... 39 Notable achievements .............................................................................................................................................................................. 40

3.4 Subawards ................................................................................................................................. 42

Partner impact ............................................................................................................................................................................................ 42 Impact of COVID-19................................................................................................................................................................................. 43

Monitoring and Evaluation (M&E) ......................................................................................43

4.1 Key Achievements .................................................................................................................... 43

4.2 Routine Monitoring ............................................................................................................ 44

Tracking direct beneficiaries ................................................................................................................................................................... 44

4.3 Annual Performance Monitoring Survey .................................................................. 45

4.4 Partner Performance Monitoring Survey (PPMS) ................................................................ 48

4.5 Impact of COVID-19 Survey.................................................................................................... 49

4.6 Learning & Adaptation ............................................................................................................. 49

Conclusion .............................................................................................................................50

Annex I. Performance Indicators ..............................................................................................51

Annex II. Performance Monitoring Survey ..............................................................................56


Annex III. Maize Seed & SSP Data ............................................................................................60

Annex IV. Maize & Chickpea Seed Distribution ......................................................................62

Annex V. Success Stories ...........................................................................................................63

Annex VI. COVID-19 Impact Infographics ...............................................................................68

Annex VII. Non-Expendable property ......................................................................................73

Annex VIII. Budget ......................................................................................................................74


i

ACRONYMS ACC Agricultural Commercialization Cluster AGP II Agricultural Growth Program II ATA Agricultural Transformation Agency AI Artificial Insemination B2B Business-to-Business CIG Common Interest Groups CFSC Commercial Farm Service Center CIRIS Client Impact and Results Information System CLU Coffee Liquoring Unit COP Chief of Party DOCs Day Old Chicks DZARC Debre Zeit Agricultural Research Center EAGC East African Grain Council ECTDMA Ethiopian Coffee and Tea Development and Marketing Authority ECX Ethiopian Commodity Exchange EPOSPEA Ethiopian Pulses Oilseeds and Spices Producers and Exporters Association EU European Union FAW Fall Armyworm FCU Farmer Cooperative Union FY Financial Year FTFMS Feed the Future Monitoring System GAPs Good Agricultural Practices GoE Government of Ethiopia GUC Grants Under Contract ICT Information Communication Technology LMD Livestock Marketing Development LMP Livestock Master Plan LOP Life of Project MCC Milk Collection Centers M&E Monitoring & Evaluation MEL Monitoring, Evaluation & Learning MoANR Ministry of Agriculture and Natural Resources MSME Micro, Small, and Medium Enterprises NGOs Non-Government Organizations PERSUAP Pesticide Evaluation Report and Safer Use Action Plan PICs Perdue Improved Crop Storage PPR Performance Plan and Report RAA Required-as-Applicable SNNPR Southern Nations, Nationalities, and People’s Region ToT Training of Trainers UNECA United Nations Economic Commission for Africa USAID United States Agency for International Development VCA Feed the Future Ethiopia Value Chain Activity


1

EXECUTIVE SUMMARY Feed the Future Ethiopia Value Chain Activity is a five-year activity (January 2017 – December 2021) funded through USAID as part of the US government’s Feed the Future Initiative and the Government of Ethiopia’s (GoE) Agricultural Growth Program (AGP) II, Component Four: Agriculture Marketing and Value Chains.

This report outlines the activity’s progress in its fourth year of implementation (October 2019 – September 2020). This year, 63,962 (31 percent female) individuals participated in FTFE VCA activities, including producers, private sector actors, extension workers, and members of civil society. Cumulative total of individuals participating in FTFE VCA activities is 286,583 beneficiaries (27 percent female), representing more than 94 percent of the life of project target of 300,000. The activity also continues to far exceed its indirect beneficiary target, reaching more than 2 million indirect beneficiaries since the project’s inception.

This fiscal year brought numerous challenges due to external factors, in particular COVID-19 and security issues; however, the team was able to shift accordingly and continue providing support to beneficiaries with impressive overall results. The team also used this as an opportunity to focus on strengthening relationships with existing beneficiaries for more meaningful, sustainable impact.


2

Key achievements this fiscal year include:

$3.7 million in livestock sales recorded as a result of VCA support on market linkages. These results establish a firm platform to build on with sufficient turnover and profitability to stimulate a sustainable investment cycle in new facilities and improved practices within the MLA value chain.

Ethiopia’s first Cup of Excellence Competition was a resounding success. Top-scoring coffee sold at $185.10 per pound ($407 per kilogram) the highest price ever recorded for the sale of an Ethiopian coffee. The COE auction also broke the record in total sales with $1,348,690.

Partner milk collection centers collected an average of 73,588 liters of milk per day and on track to reach goal of 100,000 liters of milk per year by the end of the project.

Total sales of hermetic storage bags exceeded $1.49 million, providing the equivalent of 130,254 MT of storage capacity for grain.

VCA staff coordinated contract agreements to formalize marketing opportunities, resulting in a total sales value of $2.40 million in eggs and pullets. Percent of women poultry beneficiaries across all regions reached 51 percent.

2.89 MT of coffee exported, resulting in sales of more than $13 million with an average price of $4.55 per kilogram.

$3.37 million in loans granted by the Development Credit Authority. $11.4 million in investment leveraged.

780 full-time equivalent new jobs were created.

FY2020 maize yields were 26 percent higher than the previous year. Gross margin was US$656 per hectare, an increase of 28 percent over FY2019 results.

More than 10,000 individuals (80 percent female) trained in Transformative Household Methodology, an approach that sheds light to distribution of work in households.


3


4

INTRODUCTION 1.1 ACTIVITY DESCRIPTION

Feed the Future Ethiopia Value Chain Activity (VCA) is part of the US government’s Feed the Future Initiative and the Government of Ethiopia’s (GoE) Agricultural Growth Program (AGP) II, Component Four: Agricultural Marketing and Value Chains. Under AGP II, VCA is contributing to the GoE’s objective of improving agricultural productivity and the commercialization of smallholder farmers through an inclusive value chain and market systems development strategy that integrates nutrition-sensitive interventions, climate-smart agriculture, and USAID/Ethiopia’s push-pull strategy.

The activity expects to reach at least 300,000 rural farmers with improved technologies and prioritizes work across select AGP II value chains (maize, coffee, chickpea, dairy, livestock, and poultry) in Oromia, SNNPR, Amhara, and Tigray. The VCA approach emphasizes collaboration at all levels, from strengthening commercial relationships between smallholder farmers and agribusinesses to building consensus and action around key constraints to enhance value chain efficiency and induce growth. The strategy mainstreams nutrition, gender, and youth to ensure transformative change and monitors progress from baseline to quantifiably report on impact. It is underpinned by high-quality technical assistance, strategic use of subawards tied to field demonstrations and training, and a rigorous program of field-based support and monitoring, evaluation, and learning. Activities are implemented in collaboration with partners and stakeholders in targeted woredas and selected kebeles.

Figure 1. Cumulative number of direct beneficiaries


5

1.2 GEOGRAPHIC FOCUS

The Activity is working in four regional offices (Amhara, Tigray, Oromia, and SNNPR) and two satellite offices (Mizan and Jimma) in 112 woredas.

Figure 2. Geographic focus areas


6

VALUE CHAIN ACTIVITIES

VCA works to increase the potential of select value chains to increase productivity, reduce poverty, withstand shocks, and improve incomes and nutrition. The Activity targets six key value chains: maize, coffee, chickpea, dairy, meat and live animals, and poultry. It also supports connections between the value chains such as fodder production, input supply networks, and access to credit services.

2.1 DAIRY

VCA’s interventions across the dairy value chain are focused on continuing major USAID investments in private-sector cold chain and milk processing. A total of 15,487 new beneficiaries (6,157 female) were impacted in FY 2020. This brings the cumulative total of dairy farmers to 66,782 (37.9 percent female) who continue to receive technical and commercial support throughout their various stages of development and growth.

Supporting cold chain

VCA has been working with subcontractor Almi Dairy Training Institute to support the network of Milk Collection Centers (MCCs) originally established under the USAID Livestock Market Development project in 2017-2018. At each site, the technical staff from Almi designed, fabricated, and installed a clean-in-place tank-washing system, upgraded access and connection to water and electrical supply, and tested the standby-generator electric power supply. The progress during the last three years is summarized in Table 1. This shows that a total of 89 MCCs are now working satisfactorily in terms of engineering functionality. The remaining seven sites are scheduled for completion in October 2020. Despite several obstacles, the investment in MCCs is proving to be a worthwhile intervention for the sector’s transition toward a formal milk marketing system that provides consistent bulk supply to long-term customers and processors.

Table 1. Status of Engineering Functionality of MCCs

Type of Support to Milk Collection Centers Baseline (FY 2018) FY 2019 FY 2020 Number of MCC Sites

Upgrade LMD equipment installation and site layout 86 96 96 Commission cold chain & CIP system installation 0 54 89 MCCs supported to access electricity 61 85 93 MCCs supported to access potable water 63 82 91

However, despite this progress, the proportion of sites using the 2,000-liter bulk chilling tanks has not been as fast as expected, with only 27 sites operating the cold chain capacity (Figure 3). This situation can be attributed to the high cost of running the cooling systems when milk volumes are low, especially in sites without main electrical power. One of the key expected drivers of MCC functionality was the ability to safely store milk from afternoon milking and keep it cool and fresh to consolidate with the morning milking for bulk delivery. The logistics capacity of bulk-refrigerated transport is not yet readily available, which in turn partially negates the cold-chain advantages of the MCCs.

Da’ete dairy farm in Hawassa, SNNP is one of the DTCs to receive support from VCA.


7

The trend of improvement in the operational functionality of MCCs is encouraging and very positive when measured by the simple metric of the total volume of fresh milk delivered by dairy farmers to their local collection center. The results in Figure 4 shows that the 2020 calendar-year target of achieving a daily average of 100,000 liters is possible with the continuing growth of membership across the sites. Individual MCCs are influenced by the number of members of the cooperatives, quality and consistency of technical staff and management systems in place, and proximity to key buyers.

The operational status of MCCs was assessed in more detail through a spot survey of 60 MCCs from July to September 2020. The variation in volume/site across regions is shown in Table 2. The trend of increasing volumes in Amhara and Oromia reflect the more advanced state of commercial dairy operations in these regions. Although continuing USAID support is spread across all categories of sites, a particular focus group is the large proportion (52 percent) of start-up sites that are collecting less than 500 liters of milk per day.

Operational status is monitored both by volume and by value. The analysis of milk sale data collected from July to September 2020 from 67 MCCs (22 in Amhara, 24 in Oromia, 14 in SNNPR, and 7 in Tigray) is presented in Figure 5. This shows regional variations with Amhara and Oromia to be the most developed. The total value of milk sales is ETB 1,314,400 per day at an average price of ETB 24.8 per liter.

Based on year 4 progress, the combined MCCs will achieve the first milestone in Year 5 of 100,000 liters/day; equivalent to $65,000 of sales/day worth around $20 million per year.

VCA staff in all regions have worked extremely hard to support milk collection centers at the beginning of the pandemic and ensure supply agreements to processors and customers remained open. Sixteen dairy businesses that could not market milk through an established channel as a result of travel restrictions were advised to convert fresh milk to longer shelf-life products such as butter and cheese for the Easter holiday. The resulting total sales of value-added products reached $74,034 during March and April 2020, as shown in Table 3.

432,447

710,039

66,687 105,227

1,314,400

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Amhara Oromia SNNPR Tigray Total

Figure 5. Value of daily milk sales (ETB)

9689

27

0

20

40

60

80

100

120

Total # MCC Engineeringfunctionality

Use of chiller tanks

Figure 3. Cold chain functionality of MCCs

2,063 9,349 23,434

73,588

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Base line End of Sep., 2020

Member Suppliers volumes (liters/day)

Figure 4. Daily operational functionality at 60 MCCs


8

Table 2. MCC breakdown by milk volumes (liter per day) Region < 500 500-1,000 1,000-1,500 1,500 -2,000 above 2,000 Sub-Total MCCs Amhara 7 5 4 3 3 22 Oromia 10 1 2 0 4 17 SNNPR 13 1 14 Tigray 3 4 7 Total 33 11 6 3 7 60

Table 3. Butter and cheese sales stimulated by VCA market support Region Milk Product Volume (kg) Value (Birr) # Business assisted

Oromia Butter 1,319 377,910

8 Cheese 7,783 1,636,545

Tigray Butter 1,190 395,800

6 Cheese 250 12,500

SNNPR Butter 130 37,700 1 Cheese 260 23,400 1

Total 10,932 2,483,855 16

Milk processing facilities

The dairy processing sector is undergoing substantial expansion with private-sector investment across all regions during the last five years. However, this rapid growth is characterized by many small facilities without critical mass to sustain themselves in the face of increasing competition for milk supply and retail sales. The sector is facing a painful period of rationalization and consolidation that will favor the bigger actors.

VCA subcontractor LM Quality Management is the main provider of sustained direct technical support to a group of seven milk processors. Although the engineering functionality of all seven processing plants has been completed and commissioned, their commercial operation status is at different stages as described in Table 4.

Table 3. Operational status of processing plants Processor Woreda /Region Status

Bukra Union Maychew, Tigray Pasteurizing and processing up to 500 liters of milk per day into products like cheese, yogurt, and butter.

Hirut and Rut Angollola, Amhara Regularly processing 1,000 to1,200 liters of milk/day. Also producing yogurt and butter.

Humera Union Humera, Tigray The shortage of working capital has been a critical problem. VCA facilitated a loan of ETB 3,000,000 from Dedebit microfinance. Six new staff and a Technical Manager were employed and trained to conduct basic production trials.

Dembeli Nekemte, Oromia VCA supported missing equipment, staff training, process control documentation, and legal licensing to enable plant commissioning and the start of milk processing in August 2020.

Gojam Union Dejen, Amhara Milk processing is suspended due to a lack of working capital. VCA is closely working with the Union to facilitate a bank loan.

Adama Milk Processing plant in Adama, Oromia region


9

Table 3. Operational status of processing plants Processor Woreda /Region Status

Jantekel Union Gonder, Amhara The shortage of working capital continues to be a critical challenge; which is being addressed through a loan application with Abay Bank. Staff technical training and process control documentation is completed.

Emebet and Her Children Bahirdar, Amhara Processing milk into different products like cheese and butter is underway

The critical challenges for those processing plants not yet fully operational are mainly the result of internal management and structural issues, such as inefficient decision-making processes; lack of working capital for salaries or logistics; lack of professional personnel assigned to key positions; and incomplete financial records and missing audit reports preventing loan access. The focus area for year 5 will be improving managerial and organizational capacity in human resources, financial and accountancy systems, and marketing campaigns.

VCA has a direct partnership with Family Milk in Addis Ababa and the Almi Dairy Training Institute in Hawassa. The operational status of these partners is summarized below.

Family Milk has been facing a critical challenge with limited access to foreign exchange to import aseptic packaging material for the long-life (UHT) milk production. The partnership with VCA has achieved the following results:

• The first new consignment of UHT packaging has been imported from Tetra Pak Kenya, sufficient for 700,000 liters of milk.

• The latest batch of 500 smallholder milk producers have completed technical training on dairy best practices and milk hygiene as part of a rolling extension package covering all of the farmers supplying Family Milk.

• More than 20 MT of dairy concentrate feed is being distributed on credit to 5,000 dairy farmers as part of a revolving fund mechanism for input supply.

• After eight months of closure while waiting for packaging, the UHT factory will re-open in October 2020. • Production volume of long-life milk is now at 5,000 liters/day, with a sales value of ETB 210,000.

Almi Dairy Training Institute has been experiencing a classic boom-bust cycle over the last few years. From humble beginnings in 2005, it reached peak production of 2,500 liters/day in 2015, with a substantial investment in plant and machinery funded through a loan from the Development Bank of Ethiopia (DBE). However, the combination of the increased cost of milk, stiff competition from informal unregulated milk sales, and spiraling debt burden slowed down momentum to a reduced volume of 1,500 liters/day.

Mounting financial pressures came to a head in August 2020 when the facility closed operations. Since then, the VCA team of technical and financial specialists have coordinated a turnaround strategy for the business with DBE, who conducted an audit valuation of fixed assets, restructured capital repayments on the existing loan, reduced interest rates, and agreed to a fresh injection of ETB 10 million in working capital. Year 5 will be critical for the business in terms of survival, requiring new commitments from the family shareholders to stay focused on the recovery targets. VCA is continuing to support the extension package to farmers through a network of MCCs.

VCA financial specialists are also tracking another key group of dairy processors who have been successful in obtaining bank loans for capital infrastructure and working capital under the DCA credit guarantee scheme. The analysis of COVID-19 on seven individual business submitted to USAID in May 2020 showed the devastating impact on sales. Since then, most of these small family-run businesses remain in a fragile state, which is jeopardizing jobs, investment, and market access for farmers. Summary of their status is included in Table 5.


10

Table 5. Status of DCA loan dairy businesses No Inventor Status of Dairy Business Way Forward

1 Hileab Dairy North Shewa, Amhara

Milk collection from 195 farmers averaging 2,100 liters/day worth ETB 60,000 in sales.

The loan repayment period has been extended for an additional two years through VCA support.

Quarterly loan repayments of 938,000 Birr is a big burden, equivalent to 15 days of milk sales.

Tight monitoring of cash flow, and cost-reduction program through improved operational efficiencies

2

Endalkachew Nigatu Dairy Farm Processing Adama, Oromia

Milk collection ranges from 2,000 to 2400 liter/day worth ETB 68,000 in sales. Quarterly loan repayments of 1.1 million Birr are over-loading the business. Debt repayment is equivalent to 18 percent of current sales income.

The two-year loan extension request to the Oromia Investment Bank was initially denied, before agreeing on a one-year extension to provide temporary relief. VCA is closely monitoring their demanding recovery plan to reduce costs, improve sales and cash flow, and overhaul business management systems.

3 Abaynesh Gizaw Fiche, Oromia

Milk collection has reduced to 2,000 liter/day worth around 25,000 Birr in sales.

The two-year loan extension request was initially denied, before agreement on a one-year extension to provide temporary relief. The business is trapped in a vicious cycle of reducing cash flow and liquidity preventing recovery in volume. Its prospects for survival are marginal.

Due to the decline in milk collection and sales, the business is not generating enough revenue to repay its debts.

4

Enat ena Lijoch Dairy Farm & Processing Gonder, Amhara

Milk collection volumes have crashed to 230 liter/day including production from their own farm.

Sales have dropped by 50 percent due to university and schools closing in the area.

The daily milk sales of 9,200 Birr cannot possibly cover the Quarterly loan payments of 96,000 Birr.

The business is in a critical state and desperately needs working capital and loan repayment rescheduling. VCA is trying to facilitate the negotiation with the bank, which is proving difficult.

5 Tigist & Family Dairy Farm Durame, SNNPR

Milk collection has reduced to around 500 liters/day with sales worth 21,000 Birr. The quarterly loan repayment of 56,000 Birr is a major problem.

Due to cash flow shortage, the business defaulted on its last repayment and paid only 50 percent. Although it needs a rescheduling agreement on the loan; the bank is reluctant given the track record. Negotiations are ongoing with VCA support.

6 GF Life Trading PLC Sululta, Oromia

Daily milk collection has reduced to 500 liters due to cash shortages. Although the 14 staff continue with production of Mozzarella cheese and butter, their future is uncertain.

Despite the company defaulting on a recent quarterly loan repayment, VCA assisted them with their negotiations with the bank, which agreed to a one-year loan reschedule. However, this does not solve the critical issue of working capital.

7 Z-Tambs Manufacturing Teji, Oromia

The processing facility was completed recently, with all machinery and commissioned.

Delays in construction and difficulty accessing materials due to COVID-19 resulted in cost over-run on the capital budget. The firm needs both additional financing and a loan reschedule.


11

Since the May 2020 analysis, three new milk processors received loan finance support under the DCA scheme.

It is beyond the current scope of VCA resources to maintain the level of intensity across this expanding area. There is significant demand in terms of business advisory services, market-led operational support, and technical extension to the thousands of dairy farmers relying on the milk check at the end of each month. In response, various partnership proposals and direct-funded support mechanisms are under fast-track development to support community-based entrepreneurs.

Support for private Artificial Insemination (AI) service delivery

Expanding dairy producers' access to and utilization of improved genetic breeding technologies is one of the key long-term interventions to increase productivity. It takes a leap of faith for a smallholder dairy farmer to invest in AI when she/he will not see any concrete results, in terms of increased milk sales from the resulting progeny, for three years. VCA is helping selected private-sector AI service providers in the acquisition of basic AI equipment as well as training and promoting their services through conducting field days. The results during the January to September 2020 period is encouraging, as shown in Table 7.

Two private-sector veterinary businesses in Bahir Dar are partnering with VCA to provide AI services in Amhara. AI technicians usually wait 90 days after insemination to conduct pregnancy diagnosis. The number of cows inseminated and pregnancy diagnosis performed across the reporting year is shown in Figure 6. Overall, the result achieved has steadily increased over time, and the pregnancy rate is now at 74 percent, which is much higher than the reported pregnancy rate obtained through mass synchronization and insemination, which ranges from 30 to 48 percent.

Dairy Technology Centers (DTC)

VCA is working with 250 DTCs to provide rural dairy producers with hands-on experience with new dairy technology equipment and best practices. As of September 2020, several technologies including feed choppers (fuel and electric-powered), silage bags, milking machines, manual hay balers, and forage planting materials and items listed in Table 8 were distributed.

Table 6. New dairy business assisted through DCA loan facility

No. Investor Loan

Amount (ETB)

Business category Bank Way Forward

1 Yala Agro-industry Plc (Arba Minch, SNNPR) 4 M Processing Awash VCA is providing continuous follow-up

and technical assistance. This includes documenting the baseline business status and monitoring work plan progress.

2 Werkie Kelkay Reda 0.6 M Dairy farm & milk processing Awash

3 Egna Legna MCC 0.5 M Dairy farm and

milk processing Awash

Table 7. Summary of AI Services

Region AI service providers

No of inseminations

Amhara 13 4,834 Oromia 8 3,994 SNNPR 3 233 Tigray 4 1,489 Total 28 10,550

343

910

1253

262 263525

198 190388

0

500

1000

1500

Previous quarters Current quarter Over all total

Performance of private AI service providers in Amhara region

Cow inseminated

Pregnancy diagnosisperformed

Figure 6. Performance of private AI service providers in Amhara


12

Table 8. Distribution of technologies at DTC sites across regions Technologies Unit Amhara Oromia SNNP Tigray Total Forage seeds (such as Alfalfa) Kg 200 300 200 120 820 Fodder cuttings (such as Elephant Grass, Dinsho Grass) M3 160 300 300 50 810 Sickles and Scythe Pcs 4 26 20 10 60 Silage bags Bags 720 3,600 1,800 360 6,480 Silage making container (300 liters) Pcs 162 277 155 81 675 Effective Micro-organism solution (EM Solution) Liter 826 1,406 1,350 486 4,068 Electric feed chopper Pcs 6 10 6 3 25 Diesel feed chopper Pcs 10 15 9 4 38 Manual hay balers Pcs 24 42 16 12 94 Milking machines (medium-size with four suckers) Pcs 2 3 1 1 7

Technical assistance to promote, demonstrate, and scale localized production of low-cost forage is critical to improve milk productivity in the short-term. A total of 199 DTC sites have so far received planting materials to establish green forage production sites covering 62 hectares. The selection of site-specific forage varieties is based on local conditions, land area, and historical experience. Improving forage production is just the first step. The subsequent steps of conditioning the forage through techniques such as silage making, chopping, and hay baling are also an integral part of the DTC program.

2.2 MEAT & LIVE ANIMALS

This value chain operates in the highlands where oxen are used for traction purposes and small ruminants are used for generating cash for immediate household needs. The growing demand for more affordable and better-quality meat in urban areas is stimulating growth in SME fattening sites. These production units involve cattle, sheep, and goats based on marketing strategies that target public and religious holidays when consumer demand is at a peak.

The commercial meat-export sector is still relatively small at around $90 million per year, the bulk of sales going to the Gulf States. The major actors are the modern abattoirs who have predominantly invested in processing lines for chilled carcasses, usually exported by air. The latest investment trend in value-added meat products involving vacuum-packed cuts is the way forward for an industry that has been fairly static over the last five years. Exports of frozen meat are small because Ethiopia struggles to compete on volume, price, and logistics with big suppliers such as Brazil and Australia. The lack of professional production capacity for cattle, sheep, and goats destined for export has been an ongoing set-back; partly causing the viability issues impacting several of the best-known export-orientated feedlot and abattoir businesses. Competition from more traditional and informal cross border trade in live animal exports remains a significant factor in the lowland areas.

Table 9. Improved forage sites under the DTC program Region #DTC sites Forage land cover (ha) Amhara 45 7.57 Oromia 70 22 SNNPR 58 14 Tigray 26 18.5 Total 199 62.07

Finished sheep producer Ato Melkie, from South Achefer, Amhara


13

Fattening enterprises

VCA provided basic inputs on a cost-share partnership basis for the renovation and upgrading of 108 individual small-scale cattle and shoat fattening facilities across four regions. These lead farmers have become demonstration site hubs within communities to trial, evaluate, and promote best practices. The continual extension support from VCA specialists and local Development Agents has included skills training on proper housing, use of appropriate feeding trough, provision of basic animal health care, and livestock body condition assessment.

A total of 4,329 farmers participated in field days conducted on these lead farmers' sites; most of the field days (87 percent) were conducted during the first five months of the year before the COVID19 pandemic and the rest (11 percent) during the last seven months applying COVID19 protection rules.

In this reporting period, more than $3.7 million in sales from livestock were recorded as a result of VCA support on market linkages. These results establish a firm platform to build on with sufficient turnover and profitability to stimulate a sustainable investment cycle in new facilities and improved practices.

Table 5. Livestock sales made through linkages created by VCA

Region Shoat Cattle Cattle & shoat Cattle & shoat Volume # Value $ Volume # Value $ Total Value $ Q4 Value $

Amhara 68 6,597 1,549 1,015,701 1,022,299 163,945 Oromia 208 21,825 474 343,940 365,765 38,545 SNNP 5,319 426,265 2,957 1,300,166 1,726,430 87,696 Tigray 1,047 61,697 1,081 595,123 656,820 274,630 Total 6,642 516,384 6,061 3,254,930 3,771,314 564,816

Specifically, after March 2020, livestock markets were seriously affected by the COVID-19 pandemic, primarily due to travel restrictions that resulted in higher transportation costs of animals to terminal market locations. Compared to similar periods in previous years, the selling price for cattle showed a 5-10 percent decline. This forced some fatteners to keep stock for a longer period anticipating better prices, which resulted in incurring additional feed costs. To address this challenge, over the last quarter, VCA facilitated market linkages via telephone calls and supported commercial buyers to collect animals from farmers’ sites.

Feeding system development for livestock fattening

VCA trained more than 4,000 field-day participants on concentrate feeds raw materials selection, preparation, ration formulation and feedings as well as feed handling, storage, and utilization of fattening feeds. Feed fungus development, insect, and rodent feed damage in storage are major factors that cause spoilage in the feedlot site. To address these problems, the intervention included support to farmers to apply pallets to avoid wet and feed damaging of insects and rodents.

The cattle fattening strategy recommended by VCA is based on a total mixed ration (TMR) approach, which mixes pre-conditioned roughage and concentrated feed. The approach of feeding shoats is different, with an emphasis on free-range grazing and supplemented with concentrate feeds. To evaluate body growth performance, the technique of heart girth measurement is helping farmers record weight performance every 15 days in feedlots. An estimated 108 farmers have now graduated into medium-scale commercial fattening.

Table 4. Number of producers participated in field days

Region Field day participants Total Male Female Amhara 350 95 445 Oromia 358 299 657 SNNP 1,731 844 2,575 Tigray 362 290 652 Total 2,801 1,528 4,329


14

Feed is the most vital input to any livestock business. Cattle fattening operations in particular depend on feed quality and supply to be viable. Feed accounts for 70 percent of the costs and is the most important production variable. Animals in fattening enterprises need to be fed with high-energy diets to finish within a short period. The use of formulated or compound feeds by small-scale livestock fatteners has not been a common practice due to a lack of knowledge or limited availability of appropriate feeds in the areas.

The training sessions for fattening sites emphasized the importance and appropriate use of compound feed, with feedback from lead farmers on cost-benefit aspects. The resulting sales of more than 53,000 quintals of concentrate feed, valued at $1.4 million, show the scale of adoption and interest by the trainees. Major sales are from Amhara due to a strong feed processor (also DCA loan recipient).

Table 6. Compound feeds sales made through linkages created by VCA Region Feed suppliers Feed buyers Volume sold in qt. Value sold in USD Amhara 11 1862 50,173 1,299,271 Oromia 3 372 1,212 34,238 SNNP 6 90 2,313 81,081 Tigray 3 30 280 8,904 Total 23 2,354 53,978 1,423,494

Export abattoirs

VCA sponsored seven export abattoirs and four youth groups from across the regions to participate in the African Livestock Exhibition Congress (ALEC), conducted from October 17-19, 2019 in Addis Ababa. The conference was an opportunity to learn about the national level protocol of livestock and livestock products marketing, livestock equipment, and feed inputs and to network with international buyers and suppliers.

Three export abattoirs participated in a livestock multi-sector platform conducted in SNNPR in February 2020 as part of a collaboration between VCA and the Regional Bureau of Agriculture. Key discussion topics with 31 small-scale shoat finishers included the price differentials between local and export markets. In general, local market prices are higher but subject to more fluctuations with seasonal demand.

Local abattoirs

During the early stages of the COVID-19 pandemic, from April to June, many small-scale local butcheries and abattoirs suffered badly from reduced trade due to restrictions on animal movements. The VCA Community Extension Service initiative concentrated on small-scale interventions within localized communities to mitigate these impacts. VCA staff provided telephone-based marketing support to identify new sales opportunities. This was complimented by the provision of materials such as overalls, boots, plastic apron, plastic coats, mouth masks, sanitizers, pulley, stainless steel knives, knife sharpeners, wheelbarrow, and axe.

Support to DCA beneficiaries

VCA financial specialists have been closely tracking and supporting a group of export-orientated investors in the MLA sector who received bank loan finance. The contrast between the status of MLA investors and dairy investors is significant. Most of the MLA businesses are expanding and requesting additional loans, while the majority of dairy investors are re-scheduling loan agreements and struggling to get back to previous levels. The report submitted to USAID in May 2020 identified the impact of COVID-19 on these MLA businesses. The latest status of each enterprise is summarized in Table 13.

Local and export abattoirs from Oromia and Amhara share experiances


15

Table 7. Meat & Live Animal DCA investors update No Investor Activity Status after COVID-19 Way forward

1 Dejen Molla Dembecha, Amhara

Cattle Fattening

Actively working. Sold 723 cattle to Addis Ababa markets worth $405,479.

He wants to expand and is discussing additional loan finance with the bank.

2 Gedef Nibret Dembecha, Amhara

Cattle Fattening

Actively working. Sold 78 cattle to wholesale markets worth $43,836.

The administration gave him land for a new feedlot site and he has started construction.

3

Dagnew Molla & Friends cattle Fattening Dembecha, Amhara

Cattle Fattening

Dagnew started a butchery which helped diversify the fattening businesses. After COVID, he processed 320 cattle through the butchery generating $172,603 in sales.

Improve carcass quality to add value to meat sales

4

Tefahuun, Yohannes and Friends Cattle Fattening Maksignet

Cattle Fattening

Tesfahun repaid all of his borrowed money. He sold 80 cattle and 16 sheep after COVID-19 and earned $56,000

In discussion to get an additional loan from the bank.

5 Melkamu Minyichel Adet

Feed Processer

Melkamu is working actively on feed processing and marketing. He created jobs for 20 youths and feed sales of 53,000 quintals generated $172,603

Improving relationships with input suppliers and customers.

6 Kegna trading PLC Awash Melkassa, Oromia

Abattoir & Livestock Export

Contract agreement signed to export meat to Saudi Arabia, the United Arab Emirates, Sierra Leone, South Africa, and Tanzania. Unfortunately, no exports have been possible because of COVID.

Completing Halal certification issues with the Ministry of Agriculture and export license issues with Gulf State buyers to start the export.

7 Zerihun Anbesse Live Animal Export Adama, Oromia

Livestock Exporter

No export after COVID-19 pandemic. Improving barn facilities at Adama

Receiving VCA Technology Fund equipment like generator, electrical chopper, water tank, weighing scale, and wheelbarrow.

8 Ali Halake Live Animal export Adama, Oromia

Shots & Livestock Exporter

No live animal export after COVID-19 pandemic. Supplied 6,000 sheep to an Organic export abattoir for the Arefa festival in Saudi Arabia. Generated $161,096 in sales and signed contract agreement to export 5,000 shoats to Bahrain.

Requesting VCA support to improve collection centers at Somali, Jijgjiga, and Borena areas. Improving the barn facilities at Adama Market linkage to Saudi Arabia and the UAE market are being expanded.

9 Nigussu Girma Live Animal Export Adama, Oromia

Live Animal Exporter

After COVID-19 they sold 125 cattle to the local market and generated $95,890

Need support of barn renovation and feed technology through a cost-share scheme to expand capacity to 120 cattle.

The priority technical interventions to support these businesses in Year 5 include reviewing feed regimes and ration formulation; conducting a quality assessment of incoming live animals and the subsequent impact on carcass quality; improving downstream awareness of the preferred specifications for animals; renovating the feedlot site and barn; improving the feedlot environment and bio-security; and linking them to input suppliers and livestock buyers.


16

2.3 POULTRY

Year 4 activities in poultry concentrated on scaling community impact from the 103 demonstration sites established during the latter part of Year 3. Field days, trade fairs, and training events planned for the first six months of Year 4 were disrupted by the COVID-19 pandemic. This required a change of strategy toward localized extension support, telephone-based technical assistance, and sales linkages. After the initial disruption, in response to the growing need to support poultry producers, the poultry team developed a strategic plan to expand coverage from the original nine woredas that started in January 2019 to a total of 17 woredas (Figure 7). The support from USAID for a major new poultry Technology Fund is being rolled out in the last quarter of Year 4 and will be a feature of Year 5 activities.

In total 3,652 (1,600 female) new direct beneficiaries were reached during Year 4, distributed across regions as shown in Figure 7. The main focus is the continual provision of extension support and market linkages across the existing total of 15,547 poultry farmers (7,901 Female). It is particularly encouraging to see very high level of women participation across all of the regions, which at the national level now reaches 51 percent of all poultry beneficiaries.

Market linkages & agribusiness

Through extension services, experience sharing visits, and field days, smallholder farmers, egg producers, and pullet growers were linked to consumers, retailers, supermarkets, hotels, military camps, universities, industries, and the public. VCA staff coordinated contract agreements to formalize these marketing opportunities, resulting in a total sales value of $2.40 million (ETB 87,474,770) for eggs and pullets.

Figure 7. Poultry intervention woredas

513

371

597

119

794

586464

208

1307

9571061

327

0

200

400

600

800

1000

1200

1400

Amhara Oromia SNNPR Tigray

Num

ber

of b

enef

icia

ries

Regions Female Men Total

Figure 8. Regional poultry direct beneficiaries’ breakdown October 2019 - September 2020


17

Table 8. Annual eggs sales summary Region Quantity produced Sales value in Birr Average egg price Amhara 1,005,925 4,352,684 4.33 Oromia 1,886,060 7,542,357 3.99 SNNP 898,603 3,807,288 4.24 Tigray 2,610,230 12,186,474 4.67 Total 6,400,818 27,888,803 4.36

The regional analysis of egg sales presented in Figure 9 indicates that quarter two sales value is lower due to the Orthodox Christian fasting season. The Tigray region recovered quickest from the COVID-19 travel restrictions and limited market access. In Oromia and Amhara, some egg producers were forced to sell their laying birds before the end of their natural production cycle due to low demand.

1,09

3,36

8

1,07

7,26

0

1,42

7,96

3

754,

093

3,47

5,70

9

1,42

0,69

6

1,19

4,46

7

1,45

1,48

5

1,04

0,64

7

1,07

3,16

6

923,

615

769,

860

1,72

8,00

8

744,

498

3,47

9,73

1

6,21

6,23

7

Q U A R T E R 1 Q U A R T E R 2 Q U A R T E R 3 Q U A R T E R 4

AN

NU

AL

SALE

S IN

BIR

R

REGIONAL SALES

Amhara Oromia SNNPR TigrayFigure 9. Egg sales

breakdown in Year 4

0

1

2

3

4

5

6

7

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Ave

rage

uni

t pr

ice

in B

irr

Reference months

Amhara SNNPR Tigray Oromia

Figure 10. Egg price analysis for Year 4


18

Poultry feed price increased by 13.2 percent from 14.62 Birr/kg in October 2019 to reach 16.55 Birr/kg by September 2020. The rate of the monthly increase was linear and consistent, which was a welcome relief compared to the fluctuations in other inputs. The situation with egg prices was more complex and changeable (Figure 10). The price of eggs started declining in January 2020 and reached its lowest in March, 2020 at 2.87 Birr/egg. The decline is attributed to lent season as well as due to travel restrictions imposed to control COVID-19. The subsequent recovery in prices has been rapid and sustained.

The government still exerts considerable influence in setting fixed prices for pullets within the respective regions, as part of the market stabilization policy. There are variations in price between the breeds, with Bovans Brown and Lohmann Brown fetching a premium over the Sasso breed. Interestingly, the variation in prices between the regions is significant. Under normal circumstances, inter-regional trade would even this out. In Ethiopia, this is discouraged and restricted by local statute so that each region relies on its production base for pullets. The annual production and sales of pullets from producers supported by VCA are summarized in Table 15.

Table 9. Regional pullet sales summary Region Quantity produced Sales values in Birr Average pullet price Birr Amhara 127,667 14,946,990 117.08 Oromia 209,186 22,548,518 107.79 SNNPR 33,434 2,301,343 68.38 Tigray 283,562 19,925074 70.27 Total 650,331 59,585,967 91.62

Growth in production capacity due to investment

Due to fast growth in the demand for poultry products and the lucrative domestic market, the number of new entrants into the commercial poultry sector has increased across all intervention woredas during Year 4. VCA technical support concentrated on improving performance across the sites and ensuring that new facilities and start-up entrepreneurs achieve sustainable success. The combination of new investment in infrastructure and expansion of existing buildings has shown dramatic improvements in stocking rates for both egg producers and pullet producers. The aggregated results from 57 poultry investors throughout Year 4 are detailed in Table 16, which includes a total investment of ETB13.6 million, equivalent to $373,000. The associated creation of 160 permanent jobs (76 female) and 297 casual jobs is most encouraging.

Table 10. New investment, expansion, and capacity building of poultry farms

Region Business category

Stocking capacity before

investment

Stocking capacity after investment

Percent increase in

capacity

No. of investors involved

Capital invested

(Birr)

Tigray Egg producers 1,450 2,100 45 3 2,800,000 Pullet growers 31,500 49,000 56 4 6,700,000

SNNPR Egg producers 1,770 3,890 120 7 315,000 Pullet growers 3,000 5,000 67 2 50,000

Amhara Egg producers 8,477 12,825 51 17 999,920 Pullet growers 15,000 37,300 149 11 1,258,000

Oromia Egg producers 4,080 18,800 361 9 915,000 Pullet growers 4,950 23,000 365 4 560,000

Total Egg producers 15,777 37,615 138 36 5,029,920 Pullet growers 54,450 114,300 110 21 8,568,000

Total 57 13,597,920

Capacity building

VCA sponsored 41 small-scale egg producers, pullet growers, and private input suppliers to participate in the All African Livestock Exhibition Congress (ALEC). The exhibition was a very good opportunity for regional poultry value chain farmers to purchase different poultry equipment, including egg trays, egg transport crates, drinkers,


19

feeders, and veterinary drugs. Those farmers who purchased plastic egg trays and egg transport crates have since reported that the egg-breakage percentage during transportation reduced significantly from around 5 percent to 0.5 percent.

Two manuals, one on poultry disease prevention and control and the second one on poultry feed and feeding were printed in local language and 8,500 copies distributed to beneficiaries during ALEC. The Feed the Future working group meetings on poultry, coordinated by CARE, proved an excellent way to share information and learn from acknowledged business leaders.

2.4 MAIZE

Maize trade analysis

The important contribution of maize to millions of smallholders’ food security makes it a commodity of national interest in Ethiopia, as shown in Table 17. Among major crops, maize is the largest in terms of volume produced and is the most productive crop in the country. During 2019/20, total maize production showed a modest increment of 1.4 million quintals over the previous year, representing a 1.5 percent increase. Cereals contributed 88 percent of Ethiopia’s total grain production, with maize accounting for 30 percent of total grain production in 2019/20. (CSA, 2019).

Table 17. Production of major cereals and cultivated areas 2018/19-2019/20 cropping season

Crop 2018/19 Area in

Hectares

2019/20 Area in

Hectares

% Change

2018/19 Production in

Quintals

2019/20 Production in

Quintals

% Change

Teff 3,076,595 3,101,177 0.8 54,034,790 57,357,101 6.1 Barley 811,782 950,742 17.1 17,675,184 23,780,102 34.5 Wheat 1,747,939 1,789,372 2.4 48,380,740 53,152,703 9.9 Maize 2,367,797 2,274,305 -3.9 94,927,708 96,357,345 1.5 Sorghum 1,829,662 1,828,182 -0.1 50,243,680 52,655,800 4.8

Source: CSA 2020

Although maize production increased in tonnage in the 2019/20 cropping season, the area under maize cultivation area declined by 4 percent compared to the previous production year. Maize production increases in 2019/20 came largely from a 5 percent productivity gain (40 quintals/hectare in 2018/19 to 42 quintals/hectare in 2019/20) due to favorable weather conditions.

500

600

700

800

900

1,000

1,100

1,200

ETB/

Qui

ntal

Average Nominal price of Maize 2019/ 2020Source: ETBC, 2020

Figure 11. Domestic maize price trends (2019-2020)

VCA supports pullet growers who produce layers and distribute it to market.


20

According to Ethiopian Trading Business Corporation (ETBC), the change in price in several markets from January 2019 (immediately after harvest) to October 2019 (when maize is in short supply) was significant, at a 70 percent increase (Figure 11). The seasonal upward trends were amplified by the reduced marketed surplus from the secondary Belg harvest and by the depreciation of the local currency that increased prices of fuel and agricultural inputs, inflating transport, and production costs. The underlying trend of steady price increases was mainly the result of a mismatch between demand and supply for the crop. Key factors were an artificial shortage of supply and market disruptions caused by movement restrictions and lack of transportation facilities. Price surges in other staple crops such as teff during the pandemic might have also shifted consumption patterns to lower-priced food such as maize.

COVID restrictions on travel eliminated any logistical chance for the export of maize. Price analysis across the East Africa region presented in Figure 12 suggests that there was an insufficient duration of attractive margins to incentivize exports given the short-lived windows of opportunity.

Commercialization

The primary cooperatives and their respective Farmer Cooperative Unions (FCU) represent an important channel for maize collection, storage, and marketing. FTFE VCA continued building cooperative capacity through the following mechanisms:

Contract-based forward marketing: FTFE VCA’s partnership with the Self Help Africa focused on building a comprehensive marketing and sales strategy with Bore Bako Union and Gibe Dedesa Union. Providing intensive and interactive training to 13 senior cooperative members on contractual agreements, storage, aggregation, and marketing were the first stages of building capacity to supply top quality maize. In turn, this was followed with both unions signing MOUs with mainstream maize buyers that provided the framework for a buying and selling transaction. Similar capacity building support was provided through the Advanced Maize Seed Adoption Program (AMSAP) partnership in Amhara and SNNP to six different unions, backed by loan financing. The breakdown of total sales figure of $5,096,528 resulting from the work with unions is summarized in Table 18.

Table 18. Grain marketing for maize

Region FCUs Volume of Sales (MT)

Value of Sales (ETB)

Value of Sales (USD)

Loan received (USD)

Oromia Bore Bako, Gibe Didessa 2,150 22,467,003 617,840 Amhara Merkeb, Admas 15,300 4,111,475 2,786,885

SNNP Godufu, Bench Andinet, Admas, Yem Tebaber 1,200 367,213

100

150

200

250

300

350

400

450

500

USD

/Ton

ne

Addis Ababa Nairobi Dar es Salaam Kampala

Source: FAO GIWES, 2020

Figure 12. Regional market maize price trend


21

Improved governance and management of maize cooperatives: Inconsistent and weak decision-making processes at the cooperative level are a long-standing issue affecting commercial sustainability. The cooperative performance assessment tool (CPAT) was used on 13 primary cooperatives to identify specific gaps in governance, operational structure, membership strategy, market linkages, and business relations. In turn, these lessons were embedded within the subsequent business training provided to 77 leaders from 26 maize cooperatives and senior managers from five unions.

Linkages to financial institutions: Limited financial access for smallholder farmers, cooperatives, and their respective unions is a critical limiting factor that inhibits farmers to use improved agricultural inputs and technologies. The following Year 4 results from Self Help Africa’s engagement with various financial institutions have provided a strong platform for continued economic growth in the future.

• 426 (86 female) smallholder farmers received a loan amount of ETB 1,704,276 from RuSACCO for inputs connected to maize production. RuSACCO collected interest amounting to ETB 223,990

• Oromia Cooperative Bank provided a guarantee fund of ETB 10 million to Bore Bako Union to facilitate financial loan services for bulk purchasing of farmer production in 2020. Thus far, the union has repaid ETB 7.8 million of the loan value using income from maize sales.

• The training package provided to 105 leaders and board members of 22 SACCOs is stimulating enhanced savings and economic resilience and provides opportunities for investment in inputs and technology.

Key findings of the assessments revealed that:

• Quality of maize grain supplied to the market has improved since smallholder farmers started using improved maize grain postharvest handling technologies and practices.

• Buyers have started reviewing the purity and aflatoxin levels of maize grain before they place orders. • Smallholder knowledge and skills on postharvest handling practices is much improved. • Unions have started applying forward-selling methods as part of a marketing strategy. • The participation of women in cooperatives increased on average from the original 15 percent level to

reach 29 percent of membership overall.

Postharvest handling

The greatest and quickest opportunity to increase crop income for most smallholder farmers is to reduce the level of postharvest losses. A training of trainers (TOT) conducted by AMSAP in four regions directly addressed this issue. The 135 individuals (33 female) who attended the TOT included DAs, district focal persons, agronomists, and regional officials. The subsequent multiplier effect of 20 farmers impacted by each TOT expert is shown in Table 19. FTFE VCA staff have also directly trained 405 (153 female) smallholder maize producers from three woredas of SNNPR on improved postharvest techniques and practice management.

Table 19. Postharvest training participants reached through AMSAP TOT

# Region Training participants Male Female Total

1 Amhara 639 251 890 2 Oromia 1032 132 1,164 3 Tigray 171 26 197 4 SNNPR 384 91 475 Total 2,226 500 2,726

Fabricators trained on multi-crop thresher

Twenty-six young male artisans received practical training to fabricate a multi-crop thresher. The collaboration with the Ethiopian Biotechnology Institute, Feed the Future Soybean Innovation Lab, Ministry of Agriculture, and the Ethiopian Institute of Agriculture Research provides a model for future public-private partnership


22

mechanization initiatives. The wrap-up evaluation workshop identified commercial pathways to make multi-crop threshers available at a reasonable price.

Commercialization of low-cost hermetic storage bags

Hermetic Storage Technology (HST) uses semi-permeable plastic liners to reduce the oxygen level in bags of stored grain, which in turn dramatically reduces the level of insect pest damage and risk of mold and spoilage. FTFE VCA partners with three different distributors of HST bags to develop a sector-wide approach and encourage choice and competition. During Year 4, the total sales of 1,063,399 HST bags equivalent to $1,494,383 (ETB 52,303,408) in sales value, providing the equivalent of 130,254 MT of storage capacity for grain. FTFE VCA does not interfere with, or subsidize, the commercial pricing of the various HST bags. Support targets building product awareness, developing distribution systems, and monitoring purchase trends as company turnover grows towards the critical targets for sustainable volume-based sales.

FTFE VCA’s partnership with Shayashone Plc, the exclusive manufacturer of PICS bags in Ethiopia, is proving to be an outstanding success and a role model for private-sector transformation. 1,041,699 PICS bags were sold from October 2019 to September 2020, representing the first year that Shayashone has exceeded the laudable 1 million sales milestones. The distribution of peak sales during the December-March 2020 period in FTFE VCA woredas is shown in Figure 13.

HiTEC is the exclusive agent for HST products developed by the US-based GRAINPRO organization and manufactured in the Philippines. HiTEC has already started its operation in January 2020 and during the past, six months sold 21,700 bags. Promotion of HST bag sales uses multiple markets and village demonstrations, and awareness campaigns through radio commercials and SMS with the message “Use the chemical-free bags to protect your grain from insect infestations”. Table 20 shows the specific outputs.

Table 20. HST bags promotional outputs in FY2020

Key activities HST Partner Total Shayashone HiTEC Training of extension agents, woreda experts, lead farmers 232 516 748 Recruitment and training of vendors 15 5 20 Recruitment and training of youth resellers or promoters 55 55 Market demonstrations 86 240 226 Village demonstrations 1075 225 1300

Figure 13. Monthly sales of PICS bag in VCA target areas – Oct 2019 to Sep 2020

-

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

70,000.00

80,000.00

90,000.00

Mon

thly

PIC

S ba

gs s

ales

in F

TFE

VC

A

targ

et a

reas

PICs bag sale


23

Table 20. HST bags promotional outputs in FY2020

Key activities HST Partner Total Shayashone HiTEC Radio commercials 135 70 2015 Radio talk shows 5 18 23 HST bags sales

• Ethiopia 791,699 21,700 813,399 • Export to Somalia (50 kg bag) 250,000

FTFE VCA recently signed an agreement with a third partner, EGAA Agricultural Input Suppliers Plc, which is the sole agent of HST AgroZ bags manufactured in Arusha, Tanzania. EGAA targets to sell more than 200,000 AgroZ bags in 20 months through their network of commercial farm service centers. Unfortunately, EGAA experienced an extended delay of over 8 months in obtaining a Letter of Credit (LC) for the initial consignment of 30,000 bags. The LC was finally approved in September 2020 after intervention by FTFE VCA that allowed EGAA to open a new account with an alternative bank.

Seed

FTFE VCA is supporting the maize seed sector in partnership with the private sector and cooperatives. The primary activities are (1) encouraging direct seed marketing; (2) strengthening seed production; (3) demonstrating newly released varieties.

Three private seed multiplication companies have produced a combined volume of 1,312 MT of certified seed sufficient to plant 52,480 hectares of the conventional crop for grain production. Payments to the outgrowers exceeded ETB 18 million, as shown in Table 21.

Table 21. Maize seed purchased by seed companies from outgrower farmers

Enterprise # of Primary cooperatives

/groups Variety

Amount of Purchase Volume

(MT) Unit Price

(ETB) Total Payments

(ETB) Chafe Buluk FCU 3

BH-540 68 14,000 952,000 BH-661 828 14,000 11,592,000

Haregu FCU 2 BH-661 344 14,000 4,816,000 Biniyam Mulat 2 BH 540 72 21,000 1,512,000

TOTAL 1,312 18,872,000

14 seed companies (5 in Amhara and 9 in Oromia) are focusing their business on proven improved varieties including Melkassa, Jibat, BH 540, BH 660, BH 661, and also the recently demonstrated BH 546 variety. Five seed enterprises in Amhara successfully contracted a total of 1,759 outgrowers who have planted 1,311 hectares across five woredas to multiply three varieties of seed maize (BH-540, BH-660, BH-661). In Oromia, nine seed enterprises (three private companies and six cooperatives) planted a combined total of 2,263 hectares of maize seed. This initiative involved a total of 1,272 smallholders outgrowers who will be harvesting their seed crops in Q1 of Year 5. The detailed planting breakdown is provided in Annex III and a map of the maize and chickpea seed partnerships is provided in Annex IV.

Promotion of local hybrid maize varieties: the partnership with the Advanced Maize Seed Adoption Program (AMSAP), established a total of 2,610 demonstrations involving three improved local hybrid varieties (BH-546, BH-547, and BHQP-545) in 22 districts across Amhara, Oromia, SNNP, and Tigray. Final yield results were collected and analyzed for all program demonstrations across the 22 program districts.

• More than 43,185 smallholders, agricultural experts, and local officials participated in the field days. Of these participants, 9,432 (22 percent) were women.


24

• A total of 2,726 participants, 500 of whom were women (18 percent), participated in the postharvest handling and yield estimation training, which helped beneficiaries identify the major causes of postharvest maize losses to take necessary corrective measures.

• A total of 144 demo sites were established using five newly released local hybrids (BH 546, BH 547, BH 549, Hawassa 1, and Gibie 2) across all four regions.

Other seed initiatives that will be harvested during Q1/Q2 of Year 5 include the following co-investment clients (See Annex IV for basic seed multiplication and distribution in Amhara).

• The partnership with Binyam Seed Enterprise in Amhara is building capacity with a mid-sized private seed company. Thirteen maize demonstration sites are established on land provided by selected lead farmers.

• The Ethiopian Seed Enterprise has established 3 demonstration sites in Tigray. Each site is planted with comparative trials of the 4 varieties; consisting of BH 546, BH 547, Hawassa 1, Gibe 2.

• SNNP is in the process of establishing 32 demonstration sites for BH549 and BH546. Institutional support is coming from the Bureau of Agriculture, Farmer cooperative Union and Southern Seed Enterprise.

• In Oromia, nine seed partners established a total of 91 demonstration sites on 22.7 hectares.

Spray service provision

Spray Service Providers (SSPs) initiated by FTFE VCA in 2018 remain operational and viable businesses. A total of 203 SSPs have offered their services to the farming community in 117 kebele across 14 woredas in four target regions. During the reporting period they provided spraying services covering 4,880 hectares and impacting 7,863 farmers (861 female) and earning a total of ETB 241,669 in service fees.

FTFE VCA and CropLife Ethiopia launched a second phase of recruiting, training and equipping a target of 165 new SSPs across 11 woredas in four regions. The rigorous SSP selection process conducted in 10 woredas identified 150 successful candidates, of which 90 have already received the full training package to start field operations. The detailed results of the selection process are shown in Annex III.

FAW monitoring, reporting, and early warning system

The Ministry of Agriculture established a community-based Fall Armyworm (FAW) early warning system in early 2018 with considerable technical assistance and specialized equipment from FTFE VCA. After two and half years of successful operation, FTFE VCA provided a comprehensive refresher training to community focal persons and extension agents responsible for field scouting. As part of the exit strategy for FTFE VCA, a batch of new equipment for monitoring sites was transferred to the national and regional teams in MoA to support ongoing efforts to contain the pest. The equipment details are provided in Annex III.

2.5 CHICKPEA

Market & trade analysis

Chickpea is one of Ethiopia’s key protein and food sources, with 90 percent of the national crop produced in Oromia and Amhara. The local market classifies chickpea into different categories based on color, shape, and origin. The local traditional Dessi variety is generally preferred for local consumption, with other varieties including Gondar, Gojjam, Ade’a, Wolonkomy, and Becho. Chickpea is an important and nutritious commodity, as well as

Field day at Binyam Seed Enterprise in Amhara region


25

an important export for Ethiopia. Domestic demand for chickpea is expected to grow, driven by changing dietary patterns.

In 2019/20, Ethiopia’s chickpea production area declined by 13 percent, while production volume declined by only 5 percent. This is due to productivity gains from white chickpea (16.82 Qt/hectare in 2018/19 to 19.08 Qt/hectare in 2019/20) and productivity gains from red chickpea (20.25 Qt/hectare in 2018/29 to 21.15 Qt/hectare in 2019/20).

Domestic price trends

The domestic market for chickpea is generally poorly organized and dominated by fragmented traditional market practices. The prevailing price across all markets varies from ETB 2,000/quintal to ETB 3,400/quintal. Price movements have been affected to various degrees by general food inflation, COVID-19, and areas of food insecurity. Overall, the average nominal wholesale price gradually increased during June, July, and August 2020 associated with seasonal low supply.

Dire Dawa and Shashemene prices have been trending upwards, as both areas are not chickpea producing areas. Addis Ababa, which is considered the main terminal market, has exhibited an increasing price trend since May 2020, which may be due COVID-19 movement restrictions and lack of entry to Addis Ababa from regional markets.

Export price performance

The strong domestic market demand for chickpea provides stiff competition for exporters. Based on 2020 data from Ethiopian Pulses, Oilseeds and Spices Processors-Exporters Association (EPOSPEA) assessing the Indian market, analysis shows the export price is lower than the domestic wholesale price of chickpea in Ethiopia (Figure 14). Thus, exporters are frequently trading at a loss in order to gain valuable foreign exchange. According to EPOSPEA data, during the 2019/20 production year, Ethiopia exported a total of 17,171 tons of chickpea, which is equivalent to 39 percent of the total crop production.1 The disparity between export and local prices triggered the Ethiopian Commodity Exchange (ECX) to suspend chickpea trading in 2019/2020. Negative margins from chickpea exports discourage the necessary compliance with grading and quality parameters such as size, moisture content, foreign matter, broken and damaged kernels, and contrasting color.

1 Calculation based on EPOSPEA and CSA Data

Table 22. Chickpea production

Production Year

Chickpea production area (Ha)

Chickpea production

volume (MT) 2018/2019 239,786 45,917 2019/2020 208,837 43,519

Figure 14. Domestic and export chickpea price trend in selected wholesale

200

300

400

500

600

700

800

900

1,000

Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20

USD

/ To

n

FOB price per Ton in USD


26

Postharvest storage

In many cases, farmers sell their chickpea immediately after harvest at a low price for fear of insect damage during storage. Farmers who do store their grain often rely on traditional storage containers made of wood and mud called a gota. However, in doing so, they face both weight and qualitative loss (taste, smell) to their grain by insect damage and mold. To minimize damage, farmers use chemicals such as Malathion, DDT, and Colfax which pose serious health risks and require repeat application.

To decrease postharvest chickpea loss, FTFE VCA promotes hermetic storage technology (HST) for household-level storage. HST is a proven and affordable technology to address postharvest losses, offering a solution both on-farm and throughout the grain trade system. However, restrictions on travel and group gatherings due to COVID-19 has seriously affected training and promotional activities planned by the main distributor. Despite these limitations, Shayashone successfully established a network of two vendors in West Dembia and Dejen, selling 4,180 bags valued at $5,075 over the reporting period.

Seed production & marketing

As an open-pollinated crop, most farmers save a portion of each chickpea harvest to plant the following season. The resulting poor-quality seed with low germination and poor productivity is a common problem. Commercial seed production is limited to a few specialized seed multiplication companies, contributing to long-standing shortages of quality seed available to the farmers willing to invest in a high-input and high-yield production system.

In response to this challenge; FTFE VCA partnered with five local seed enterprises in Year 3 to produce improved chickpea seed through a contract farming system with smallholder outgrowers. During the Year 4 harvest period from October-November 2019, these same seed companies collected a total of 163 MT of chickpea seed worth $163,000 (ETB 5,702,871) from 619 outgrower farmers (Table 23).

Seed production offers an attractive incentive for farmers with the difference between seed prices of ETB 34,986/ton compared to normal grain prices of ETB 25,981/ton; equivalent to $1,000/ton versus $744/ton. The 163 MT of seed is sufficient to cover 1,630 hectares of grain crop production in the production season commencing August 2020. See Annex III for basic seed multiplication and distribution by FTFE VCA in Amhara.

Table 23. Volume and value of certified chickpea seed collected in Q1 of Year 4 Seed

enterprise Woredas # of Outgrowers

Volume of seed collected (MT)

Unit price (ETB)

Total value (ETB)

Tsehay Union Gonder Zuria, West Dembia, East Dembia, Takusa, Alefa

280 24 29,320 712,095

Ghion Union Enemay, Awabel 175 42 37,200 1,557,638 Miebele FCU Medebay Zana 86 3 34,867 108,088 Amuari Adea, Lumie, Gimbichu 62 86 36000 3,088,800 Liben Woliso Becho, Woliso 16 8 31500 236,250 Total 619 163 5,702,871

In anticipation of year 5, FTFE VCA field teams have expanded support for chickpea seed production through a wide range of community outgrower schemes with seven seed companies across 10 woreda in three regions.

Tsehay Farmers’ Cooperative Union operates in all of the areas of North Gondar where chickpea production is common. Under a formal partnership with FTFE VCA, the union is developing new contract-farming arrangements with 8 primary cooperatives in 3 woredas. Overall, 175 farming members of these cooperatives have committed to seed multiplication contracts for the upcoming season to supply to their local cooperative warehouse for cleaning, grading, and packing before centralized payment, storage, and distribution by the union. This provides them with premium prices and access to improved certified seed, fertilizer, and extension services. Furthermore, all farmers received pre-season training on GAPs for crop production.


27

Amuari and Burka Seed Enterprises are two commercial private-sector producers of chickpea seed operating in Oromia. Using resources provided through the VCA partnership, this season Amuari contracted 193 farmers from Adea and Lumie woredas while Burka contracted 114 farmers in Adea woreda.

Ghion Farmer Cooperative Union located in the East Gojam cluster, is providing similar seed production contracts in Enemay woreda to 315 farmers.

Becho Woliso and Liben Farmer Cooperative Unions have entered a seed multiplication partnership with FTFE VCA and trained and contracted 145 seed outgrowers in Becho and Woliso woredas in Oromia. A group of 60 (1 female) extension staff, trained by Amuari, are now actively supporting the seed multiplication scheme with Liben FCU using 15 seed multiplication demonstration sites for field days throughout the production season.

Mibele Farmer Cooperative Union has contracted 50 outgrower farmers for seed multiplication in the Medebay Zana woreda.

In all, 978 smallholder farmers were trained and contracted to complete seed multiplication (see Table 24 for a detailed breakdown). A total of 43.2 MT of basic chickpea seed was distributed, sufficient to plant 430 hectares of seed crops. Outgrowers are receiving field-based agronomy training in seed production and proper bio fertilizer use. The seven aforementioned seed enterprises are collaborating with Gonder and Debre Zeit Agricultural Research Centers to source early generation seeds of the latest varieties of Natoli and Kabuli. These varieties will be used evaluate performance for local and export markets.

Table 24. Summary of Q4 seed production activities Seed Enterprise

(partner) Woreda(s) Total trained farmers

Basic Seed Distributed (Qt)

Distributed Bio fertilizer (Sachet packages)

Ghion Enemay 315 75 280 Tsehai G/Zuria, East Dembia 175 161 303 Mibele Medebay Zana 50 15 60 Amuari Lumie, Adea 193 51.8 160 Burka Adea 114 58.5 180 Becho Woliso Becho 31 19.5 60 Liben FCU Woliso 100 52 100 Total 978 432.8 560

Demonstration & field days

Selected seed outgrowers’ fields and chickpea producer demonstration plots established in the previous year were chosen to host field days showcasing the four newly-introduced chickpea seed varieties of Habru, Arerti, Ejere, and Hora. The field days imparted knowledge and skills on GAPs and the benefits of key inputs like biofertilizer to the neighboring community of farmers growing conventional grain crops.

1,436 farmers (498 females) attended a sequence of field days on seed production in Amhara implemented by Tsehay and Ghion FCUs. Tsehay Union organized 24 field days focusing on chickpea/grain production involving 2,572 (594 females) farmers. Liben FCU and Amuari PLC organized eight field days in Oromia on seed production demonstration sites attracting a total of 1,464 (539 females) farmers. In Tigray, six field days on improved chickpea seed multiplication engaged 524 (242 female) farmers and 14 (3 female) extension experts.

Table 25. Summary of chickpea field day participants

Region FC Union Number of participants Male Female Total

Amhara Tsehay 733 394 1,127 Ghion 205 104 309

Oromia Liben 702 252 954 Amuari 1,424 287 1,711

Tigray Miebale 282 242 524 Total 3,346 1,279 4,625


28

Field day participant farmers valued the performance of the varieties and purchased the seed for this chickpea growing season. The field days generate farmer awareness on best practices for land preparation, benefits of improved seed, seed production, integrated pest management, bio fertilizer use, HST bags, Aybar tillage technologies, and integrated gender and nutrition messaging.

Support for CIGs

Over 190 youth organized under 14 CIGs from three kebeles in Enemay woreda (Amhara) received training on chickpea GAPs. With an input package provided by FTFE VCA comprising 20 quintals of improved seed and 80 sachets of biofertilizer, the CIGs produced chickpea during the off-season using irrigation. These groups subsequently harvested and sold 14.3 MT of chickpea valued at $12,150.

Spray service providers

FTFE VCA, in partnership with CropLife Ethiopia, launched spray services in chickpea target woredas as part of a second phase. Details of the selection process conducted in 22 kebeles in five chickpea target woredas are summarized below. the 75 fully-trained SSPs have received sprayers and personal protective equipment (PPE) to kick-start operations.

Table 26. Chickpea spray service providers

Region Zone Woreda # of farmers

participating in awareness events

# of farmers interviewed

# of SSPs trained

Amhara

W. Gondar East Dembia 211 45 15 W. Gondar Gonder Zuria 395 46 16 W. Gondar West Dembia 329 45 15

Oromia E. Shoa Ada’a 171 36 14 E. Shoa Gimbichu 209 45 15

Total 1,315 217 75

2.6 COFFEE

Coffee is Ethiopia’s most important and valuable export commodity and the promotion of specialty coffee is a key objective of FTFE VCA. To date, technical staff operating from satellite offices in Jimma, Bonga, and Mizan have impacted more than 66 cooperatives and commercial farms through various processes supporting washed and natural coffee. The package of agronomic training and improvements for harvesting and processing is achieving noteworthy increases in both coffee value and farm profitability. As detailed in Table 27, these initiatives have supported the export of 4,881 MT of green coffee in the 2019/2020 season reaching total sales of more than $22.4 million with an average price of $5.78/kg.

Bench Maji Coffee Union leadership


29

Table 27. Coffee export data from partnerships in SNNP and Oromia

Name of Company Volume of green coffee exported (Kg)

Export Sales USD

Average price $/Kg

Bench Maji Coffee Union 2,196,000 8,690,820 3.96 Kaffa Union 23,284 134,581 5.78 ZAT plc 8,400 45,192 5.38 Taga Tula plc 154,915 929,490 6.00 Tatmara PLC 10,000 88,800 8.88 Keta Muduga 2,257,300 11,504,626 5.09 Jimma area CIGs 22,000 145,374 6.60 Limu Seka 209,276 953,841 4.55 Total 4,881,175 22,492,724 5.78

Another FTFE VCA marketing role is through the support of outgrower schemes that produce and sell red cherries to neighboring coffee plantations via a contractual relationship that benefits all parties involved. Red cherries are the raw coffee fruit picked from the coffee tree that require further processing (washing and/or sun drying). During the 2019/2020 season, 1,218 (339 females) smallholder coffee producers sold 2,082 MT of red cherries to six large commercial farms with a farm-gate sales value of ETB 24,364,104. The sales income includes a total premium price incentive of ETB 4,895,024, rewarding the farmers for delivering the highest quality cherry, as shown in Table 28.

Table 28. Outgrower coffee sales in SNNP

No. Commercial farm & processors

Woreda

# of smallholder farmers Red cherries

marketed in kg

Nominal value - local

market price in

ETB

Value of sales paid

in ETB

Premium margin from

market linkage

Male Female Total

1 Taga Tula Gimbo 434 213 647 547,758 547,7580 7,120,854 1,643,274 2 Tatmara Gimbo 47 3 50 73,200 732,000 951,600 219,600 3 ZAT Gimbo 165 84 249 110,050 1,100,500 1,430,650 330,150

4 Demeke Wanna

Debub Bench 135 35 170 400,000 3,600,000 4,400,000 800,000

5 Zehra Deliwana

Debub Bench 98 4 102 951,000 8,559,000 1,046,1000 1,902,000

Total 879 339 1,218 2,082,008 19,469,080 24,364,104 4,895,024

Cup of Excellence

The Ethiopian Coffee and Tea Authority and Alliance for Coffee Excellence (ACE), with USAID’s FTFE VCA support, brought the world renowned Cup of Excellence coffee competition to Ethiopia for the first time in 2020. Beginning in September 2019, the team launched a mass awareness campaign across all coffee areas. In February 2020, the competition process started in earnest with an analysis of each sample by a panel of local experts under the watchful eye of the Head Judge, Mr. Paul Songer. Due to COVID-19 restrictions, evaluation of the top 150 coffees through the process of repeated “cupping” took place in the United States in April 2020 using protocols specially developed by ACE. The final batch of 40 top coffees arrived at the international stage where a panel of experienced judges selected the official Cup of Excellence Ethiopia 2020 winners.

For the Cup of Excellence auction, 168 buyers from 33 countries registered for both COE and National coffees, receiving samples of each coffee. Prior to auction week, buyers received bidding instructions and agreements for review and approval. The Cup of Excellence International Auction for the top 28 coffee “lots” entailed a lively 24-hour online event held on June 25, 2020. The 11 National Winners were auctioned online from June 22-26, 2020.


30

Cup of Excellence Ethiopia Auction – by the numbers

• A record breaking 1,462 coffee samples were submitted to Hawassa, Jimma, Diredawa, and Addis Ababa sample collection centers.

• The prestigious international auction achieved total sales of $1,348,690, shattering the previous sales record of $830,245 from El Salvador (2011).

• The average price paid for coffee reached $28 per pound.

• The top-scoring coffee sold at $185.10 per pound, or $407 per kilogram, the highest price ever recorded for the sale of an Ethiopian coffee.

• Buyers bid 4,137 times for over five hours to secure sought-after winning coffees. The second top coffee received a total of 902 bids, another record-breaking figure for the competition.

• Including proceeds from the National auction winner, total sales of 39 coffee consignments reached $1,540,371.

All winning 39 farmers received certificates of recognition during the colorful Awards Ceremony held on September 24, 2020, with the guests of honor, Minister of Agriculture H.E. Omer Husen, and the USAID Mission Director Mr. Sean Jones.

Coffee Quality Institute

The Q Grader course developed by the Coffee Quality Institute (CQI) is an internationally recognized qualification for experts involved in laboratory-based sampling, testing, and sensory analysis of coffee samples. To date, 23 experts (21 percent female) from ECX, Coffee Liquoring Unit (CLU), exporters, and grower associations have participated in the Q Grader training and examination process conducted by CQI as part of FTFE VCA support to bolster the level of accredited expertise in sensory skills and quality analysis. Notably, trainees represent the first individuals in Ethiopia in recent years to undergo Q Grader training. Encouragingly, 15 of the experts (including two females) successfully passed the re-take exam held in December 2019 allowing them to become qualified Q Graders. Additional Q Grader courses including re-take exams have been suspended due to COVID-19 travel and quarantine restrictions.

The Q Processing- Level 2 course for technicians involved in coffee processing, with professional certification, is the first of its kind in Ethiopia. This course fosters a new type of respect and career path in the coffee value chain, providing a structured curriculum for technical staff from coffee-producing communities. To earn professional credentials, participants must pass 16 theoretical and practical exams covering all aspects of post-harvest coffee processing. The training was conducted by experts from CQI over three intensive days in November 2019 at Horizon Plantation, in Agaro, Jimma. In all, 16 washing station managers attended the course and 6 individuals passed the final exam.

The curriculum for the junior professionals cupping training was developed in cooperation with CQI, Boot Coffee, and Jimma University with potential for use as a national cupping curriculum, offering a potentially huge opportunity to increase the pool of young professionals looking to become Q Graders. The third round of junior cupping training was conducted over October 29-November 1, 2019 at Jimma University. In total 66 (33 percent female) post-graduate, graduate students, and lecturers attended the four-day course.

Coffee sensory evaluations must be conducted in a controlled environment, with specialized equipment, following rigorous protocols, by trained professionals. Coffee laboratories are critical components for building the capacity

COE first winner Nigussie Gemeda received his check from the Minister of MoA H.E Ato Oumer Hussin

https://dailycoffeenews.com/2020/02/24/ethiopia-breaks-cup-of-excellence-record-for-coffee-submissions/


31

of the coffee sector to professional evaluate coffee. A program of laboratory assessments conducted by CQI included the facilities at the Ethiopia Commodity Exchange, Mullege coffee exporter, COQUA, and Keta Muduga Union. The assessment involved evaluating equipment, laboratory infrastructure, and furniture, lighting, and ventilation. Detailed recommendations for each laboratory identified requirements to achieve certification to the standards outlined by the Specialty Coffee Association (SCA). FTFE VCA is supporting a share of the equipment needs through co-investment with COQUA, Bench Maji Union, and Jimma University.

Boot Coffee

The panel of experts from Boot Coffee, Coffee Liquoring Unit (CLU), Ethiopia Commodity Exchange, and COQUA are pooling resources to identify and evaluate the untapped potential for coffee varietals through a process known as exceptional coffee mining. Results from testing and analysis of the first round of 100 coffee samples were presented to 190 participants during discussion forums held in Jimma, Bonga, and Mizan in October 2019. The interactive cupping sessions generated lively debate on the merits of individual samples and awareness of specific defects and corrective measures. The second round of 151 samples is underway with support from Boot Coffee’s laboratory in California and laboratory staff at COQUA, CLU, and ECX. A comparative analysis will provide further insight into new flavor profiles and the influence of harvesting practices to improve quality.

Boot Coffee’s expertise with coffee processing techniques for wet coffee washing stations and sun-drying stations is building new capacity across 50 pre-selected sites in Western Ethiopia. The adaption and adoption of best practices developed in Colombia and Panama, is providing Ethiopian growers with hands-on experience using world-class technology. The Micro Mill Optimization Program involves careful site selection targeting cooperatives and common interest groups (CIGs) willing to co-invest as part of the equipment support provided by FTFE VCA through a technology fund.

The 32 sites equipped with washing and pulping machines supplied from Colombia are benefitting from reduced water consumption and energy advantages, and thus reducing the environmental footprint at each site. The 28 sites specializing in “natural” or sun-dried coffee are equipped with a high-quality heavy-duty mesh netting sourced from the seafood processing industry. The improved technology involving uniform level beds, shade cloth, and curved plastic rain covers marks the transition from traditional sun-dried coffee to a more controlled process of air-dried coffee which is yielding substantial benefits in terms of quality.


32

The Coffee Wet Mill and Dry Processing Sites–Phase 1 report submitted to USAID in October 2020 provides an in-depth analysis of the results from the initial phase of 24 sites operational during the latest 2019/2020 harvest season. The visual summary presented above is encouraging as all 50 sites beginning their upcoming harvest.

Coffee nurseries

FTFE VCA is investing in supporting coffee nurseries to address the challenge of replacing old coffee trees that show high levels of disease and low productivity. The 58 sites owned and managed by CIGs, cooperatives and individuals are providing high-quality disease-free seedlings to local communities at affordable prices. Refer to Figure 15 below for an overview of nursery and seedling sales sites.

FTFE VCA Year 4 results are promising with a total production of 2,248,545 seedlings generating just over ETB 3 million in sales income and impacting 4,064 farmers. Nurseries in Amhara and Oromia sold more than 98 percent of their production on a cash basis to local farmers. Conversely, nurseries in SNNP follow a different business model with 63 percent of total production sold on the open market, 25 percent allocated to members, and 12 percent carried forward as unsold stock.

Table 29. Coffee seedling production and marketing in Year 4

Sr/No Region # Seedling

produced in Year 4

# Seedling sold

Value of sales in

ETB

# Seedling allocated to members

Total # Seedling planted

Total # Farmers

1 SNNPR 926,090 584,645 555,234 231,702 816,347 582

2 Oromia 916,998 916,309 211,2910 689 916,998 1,272

3 Amhara 405,457 393,290 393,290 2,115 393,290 2,210

Total 2,248,545 1,894,244 3,061,434 234,506 2,126,635 4,064

Technical training for smallholders and outgrowers is a year-round activity for the FTFE VCA coffee team in collaboration with experts from the regional Coffee and Tea Authority and the MoA Development Agents. The objective is to equip and empower coffee farmers with the skills, knowledge, and motivation necessary to adopt a suite of sustainable and productivity-enhancing agronomic practices on their farms, thus achieving higher yields while adapting to and mitigating the effects of climate change. The summary of FTFE VCA technical assistance and GAP training provided to 14,402 (4,593 females) farmers are shown in Table 30.

Figure 15. Woreda location of nursery and seedling sale sites


33

CROSS-CUTTING ACTIVITIES 3.1 CAPACITY BUILDING

Market Information System (MIS)

The MIS team concentrated on the analysis of price movements influencing the MLA, maize, and chickpea value chains to gain a more detailed understanding of trade issues. Distribution of the marketing briefs shares experience and knowledge across a vast network of agribusiness traders, AGP national and regional offices, as well as exporters and associations. The various factors influencing domestic and export pricing for maize and chickpea are presented in the respective value chain sections of this report.

Looking into the Ethiopian meat processing and export market, the Gulf States are the major export destination. Unfortunately, the overall trend of meat exports is declining due to supply shortages and high domestic prices. In the case of beef, the price differential is significant with domestic markets paying from $8/Kg to $15/Kg compared to offers of $5/kg from exporters (which is already uncompetitive against benchmark Brazil price of $3/Kg). The traditional competitive advantage of proximity to Gulf markets for air-freight of chilled shoat carcasses is being undermined by very low margins with exporters buying animals at the equivalent carcass price of $5/Kg and selling to customers at $5.50/Kg to $6.10/Kg.

Regulatory framework for dairy & live animals

VCA provided high-level consultancy support to the Ministry of Agriculture to develop comprehensive legal texts for regulatory frameworks for both the dairy and live animal Livestock sectors. Despite the final drafts being formally handed over and accepted by MoA experts on March 7, 2019, little progress has happened since. Internal policy changes and jurisdictional reviews in government meant that Dairy marketing remains under the MoA mandate whilst Livestock marketing (including live animals) has been transferred to the Ministry of Trade. This process has caused delays and confusion in the ratification process for both frameworks. The Ethiopian Dairy Association is following up on the issue with MoA, whilst the Ethiopian Livestock Traders Association (ELTA) is following up with MoT.

Parallel discussion with VCA and the Ethiopian Poultry Producers and Processors Association in collaboration with MoA identified feasible channels to introduce a comprehensive marketing system in the Poultry value chain. After extensive discussions, VCA developed a set of consultancy proposals to conduct the necessary research to draft a regulatory framework and legal text. Subsequent approval from USAID ensures this activity will commence in Q1 of Year 5.

Table 30. VCA technical assistance and training outputs in Year 4

Training Type Region Woredas Farmers Male Female Total

Agronomic practices to improve the productivity and quality of coffee (stumping, replanting, improved seedlings)

Oromia SNNP Amhara

Debub & Semen Bench, Decha, Gimbo, Chena, Gomma, Gera, Guangua, Dera

2,799 1,011 3,810

Pre-harvesting, post-harvest training and sundried specialty coffee production support to CIGs, lead farmers, and cooperatives

Oromia SNNP Amhara

Debub, Semen Bench, Decha, Gimbo, Chena, Gomma, Gera, Guangua, Dera

6,367 3,282 9,649

Awareness training on outgrower scheme and vertical integration market linkages Oromia 643 300 943

Total 9,809 4,593 14,402


34

DCA loan finance

VCA’s financial services team received more than 56 business plans and loan applications from agribusiness investors under USAID’s DCA. Following due diligence assessments, these loan proposals were referred to banks with corresponding DCA supporting letters. 39 percent of the loan applicants, representing 22 agribusinesses mainly from MLA, poultry, dairy, and coffee value chains, were successful with a total loan approval of an estimated $3.37 million (ETB 108.2 million). The summary breakdown is provided in Table 31.

Table 31. Breakdown of the loan approvals by value chain

MLA Dairy Poultry Coffee Chickpea Microfinance Institution Total

ETB 25,800,000 5,750,000 1,750,000 13,500,000 10,000,000 51,400,000 108,200,000 9 loans 4 loans 3 loans 3 loans 1 loan 2 loans 22 loans

VCA support extends well beyond the loan application review stage, including a package of follow-on technical and business management advisory services to ensure successful business growth. Key examples of this capacity building is provided below.

The financial forum for coffee attracted 48 (4 female) participants including MSMEs and representatives from Awash Bank, Addis International bBank, Cooperative Bank of Oromia, Oromia International Bank, as well as the branch managers from Harbu and Agar microfinance institutions. The forum, held in Jimma on January 23-24, 2020, raised awareness on different credit products, loan application criteria, and procedures and helped to break the Addis-centric barrier of improving access to loan finance. A round of one-to-one matchmaking sessions was held to create a credit relationship with the businesses and each financial institution afterward. VCA is continuing to track the ongoing outputs from the forum which will be reported in the future once loan deals are approved.

VCA study assessing COVID 19 impact on DCA loan recipients provided valuable insight on business performance and challenges impacting raw material supply, market disruption, and limited access to suppliers and customers due to movement restrictions. The detailed study findings included 7 dairy processing businesses, 9 enterprises in the MLA and livestock feed sector, and one poultry producer. The study review process with USAID in May-June 2020 initiated follow-up discussions with Addis International Bank, Oromia International Bank, and ENAT Bank. As a result of this intervention, a loan repayment extension was granted to five of the agribusinesses that were most significantly affected by COVID-19 related disruptions. Discussions are continuing with other banks for similar relief to the remaining businesses that requested loan restructuring.

Virtual training on business management during a crisis, market access, quality control, and managing cash flow were given to 18 agribusinesses who already secured a DCA loan. The virtual advisory services include business management during the COVID-19 pandemic, and market linkages and quality issues with milk producers and processing facilities. Pragmatic advice on managing cash flow and liquidity is proving key to monitoring loan repayment schedules and improving dialogue with the respective banks as issues arise.

Cooperatives & youth CIGs

Training on quality standards and grades provided to 1,101 (250 female) primary cooperative leaders, agribusiness operators, and farmers in 19 woredas of Oromia. The training was conducted using a mix of theory and on-site visits to cooperative warehouses for practical sessions on grain quality, storage practices, and site cleanliness.

Similar hands-on training with a focus on grain quality, pest control, and inventory management involved a different group of 1,247 (452 female) managers and leaders of unions, primary cooperatives, CIGs, women, and youth groups in Amhara, SNNPR, and Tigray.

Agribusiness development and financial management training programs impacted 1,225 (409 female) members of youth groups and CIGs. Of the total, 306 members belonged to youth groups who are engaged in tractor leasing services located in Oromia. More than 50 practical and bankable business plans have been developed with the youth groups engaged in tractor leasing services and follow-up support is ongoing with pending loan applications.


35

Agrodealers

VCA is working with 58 agricultural input retailers to upgrade facilities and become licensed and certified agrodealers that fully comply with all regulatory requirements. Linking these retail outlets with a total of 42 commercial partners including Farm Service Centers, feed processors, and wholesalers is improving stock levels, product range, and technical knowledge. Popular items such as seeds, agrochemicals, veterinary drugs, and PICS bags are generating critical mass in terms of turnover and repeat orders from the local farming community.

The first phase of the roll-out included 20 agrodealers to evaluate the efficacy of solar power installation used for refrigeration of vaccines, lighting, and mobile phone charging services. Upgrading the small premises included the provision of shelving, lockable storage cabinets, protective clothing, ventilation, storage units, and general painting and cleanliness. The second phase saw the expansion of solar power systems to a total of 27 selected shops in SNNPR and Oromia. The distribution of materials across the remaining 40 sites is now complete.

Table 32. Agrodealers by region and business category

Region No of Woreda

Agrochemical Shop

Vet Drug Shop

Farm tool shop

Livestock Feed

No of agro dealer

Oromia 17 9 11 4 3 27 Amhara 7 5 6 1 12 SNNP 9 3 3 2 2 10 Tigray 8 3 6 9 Total 41 20 26 6 6 58

The virtual field visit by USAID to one of the agrodealers in Oromia in September 2020 provided invaluable experience on conducting similar visits in the future to provide a subjective assessment of the program on individuals and their farming customers. More objective assessment through regular performance reports and sales results is ongoing and will be reported in more analytical detail during Q1 of Year 5. The initial results from the 20 sites in Phase 1 are highly encouraging with gross sales of more than ETB 15 million of inputs supplied to some 61,000 farmers within the first three months since the upgrade.

Apart from commercial results, the growth in technology supply combined with advisory services from the shop owners is a significant benefit to farm productivity. Support from the Oromia Bureau of Agriculture is proving invaluable as they have written to the Agriculture Input Supply Corporation to prioritize input distribution to agrodealers operating under VCA.

3.2 GENDER & YOUTH

Gender equality, female empowerment, and positive youth development (PYD) is essential for achieving USAID and AGP II development goals and activity targets. Project activities address specific gender and youth-based constraints to ensure all members of farmer households participate.

Table 33. Regional female and youth participation

Region Female (%)

Youth (15-29) (%)

Amhara 26 16 Tigray 37 16 Oromia 23 21 SNNPR 32 26

Mohammed Musa, a VCA supported agrodealer in Amhara


36

Assessing the FY2020 data on beneficiaries, the activity achieved an overall level of 27 percent female participation, compared to the 30 percent life of project (LOP) target. Overall youth participation reached 20 percent with a LOP target of 25 percent. Figure 16 shows that the rate of growth with youth beneficiaries followed a similar pattern to the overall project, with a distinct leveling-off since the start of the COVID-19 pandemic in March 2020.

Behavioral change

Gender Equality and Positive Youth Development Trainings for Partners. The team curated gender equality and positive youth development training for VCA partners. The purpose of the training was to increase the participation, contribution, and leadership of women and youth in agribusinesses and to improve business outcomes through inclusive market development. In FY2020, a total of 79 (21 female) individuals and partners benefited from the training. This included 16 training participants in SNNP (3 female) from 9 partner organizations, Amhara 27 (7 female) participants from 10 partner organizations, Oromia 36 participants (11 female) from 9 partner’s organizations. Partners took part in sessions related to gender and youth inclusiveness planning in which they were able to explore their constraints and engage in practical exercises to develop their gender and youth inclusion action plan. In FY2021, VCA plans to review the action plans and conduct refresher training.

Transformative Household Methodology (THM) is an approach that uses a training tool to work holistically with households to discuss and assess the roles, responsibilities, and access to resources of each household member. With the support of a facilitator, families identify who does what and come up with solutions to narrow gaps in workload balance, resource allocation, and decision-making power. The approach and complementary tool promote dialogue and social norm change. The THM approach is dynamic and engaging, which attracts all household members including, husbands and children. The aim is to change perceptions of household gender stereotypes and influence families to share resources and decisions fairly while promoting income-generating activities for all members.

Figure 16. Youth beneficiary growth

THM training in Tigray region with the animated and portable materials


37

Portable animated materials and tools have upgraded and standardized the training delivery. The new materials give step-by-step instructions with detailed visual cues; they are also colorful and the drawings renewed interest from many family members. The integration of THM reached a total of more than 10,000 individuals (80 percent female) during the reporting period in all six value chains plus nutrition activities.

VCA developed and distributed 2,300 materials including leaflets, illustrations, and booklets in three languages (Amharic, Tigrigna, and Oromiffa) through a Training of Trainers course for Women and Men Development Army members. The new materials have been used by 240 (78 female) development agents who will become facilitators and reach more than 1,200 households across the four regions.

Integrated Support for VCA Field Activities

Business Mentorship. To encourage more young women to participate in agriculture and become financially self-reliant, VCA launched a program where mentors guide young farmers and share experiences on good farming practices, finance, and business management. The peer learning activity links established producers working in livestock value chains with mentees in their locality who are committed to sustained engagement. Mentors provide technical and soft skills training to mentees, and mentees have become a reliable, quality supply source for mentors, helping them scale their agribusinesses. In FY2020, VCA selected 67 women and youth mentors (90 percent female) across four regions and connected them with 659 mentees (75 percent female). Ongoing technical support will be provided in FY2021.

Access to Finance. VCA helps establish linkages between project beneficiaries, microfinance institutions, and banks that provide USAID Development Credit Agency (DCA) loan guarantees. VCA facilitated loans with Enat Bank valued at ETB 350,000 and 400,000 for two women from Awolalo woreda in Tigray. Both women are engaged in poultry activities and act as mentors supporting 22 women and youth mentees. Additionally, two women in Amhara received ETB 3.6 million, one woman in Oromia received ETB 1 million, and one woman supported through the national office and working in coffee received ETB 2 million.

Experience Sharing. VCA provides experience sharing platforms for women and youth who work across the different value chains. Experience sharing allows for a greater degree of interaction among women and youth participants, especially in discussion sessions which focus on technologies and management challenges and opportunities at the farm level. In FY2020, a total of 198 (85 female) individuals participated in the experience sharing events in all four regions. Linkages were created with pullet growers and distributors, and information was exchanged related to medicine, feed, and other technology suppliers in the area.

Childcare Services. The pilot childcare program aims to encourage women to attend crucial capacity building activities (taking into account the care burden often faced by women) by providing events with suitable safe space for their young children. The objective is not only to increase the number of women participants at each training evert, but also to improve the quality of training and capacity building that women receive. In FY2020, 55 women were trained to serve as childcare providers which enabled the successful rollout of childcare services at 13 different events benefitting 56 parents (55 mothers and 1 father). EVCA will continue to integrate and scale-up childcare services going forward.

Gender Action Learning System (GALS) Evaluation. In January 2020, VCA conducted an assessment to determine the impact of the first “Catalyst Workshop” for training participants in the coffee value chain in Agaro and Aman to inform the next phase of GALS. Unfortunately, initial findings suggested that there were significant gaps in the retention of the information and tools presented in the workshop because of the translation into local languages. This was compounded by a lack of follow-up and existing cultural and gender-based constraints that GALS is meant to address. Taking into consideration the feedback and challenges associated with this activity, there will be no future planning for a review workshop.

Women in Leadership Training Facilitators Manual. In FY2020, VCA developed a Women in Leadership Facilitator’s Training Manual to support leadership and assertiveness skills-building for women leaders in cooperatives and CIG’s. The training builds the capacity of women in leadership roles through increased


38

communication and decision-making skills. They become better equipped to lead institutions and groups and serve as role models for other women in their communities. The manual was validated with VCA’s gender and youth specialists through a training of trainers at the end of FY2020.

Value chain intervention

The poultry value chain has shown promise for women as it requires limited capital and can be managed around the household (which are some of the constraints women face due to gender and social norms). Leveraging opportunities for women, VCA has seen that throughout project implementation, more than half of poultry value chain beneficiaries are female and that 34 percent are youth. Youth have also been very active in coffee seedling production, representing 26 percent of coffee value chain beneficiaries.

Technology transfer

Tigray field office conducted a rapid assessment of the needs of women and youth beneficiaries during the COVID-19 pandemic which was used to inform the provision of different technologies for dairy and poultry beneficiaries engaged in mentorship service. A total of 7 women milk cooperative members received feed and milk cans, and 10 women and youth mentorship beneficiaries received feeder, waterer, egg trays, disinfectant, and sanitary soap. Additionally, a youth slaughterhouse cooperative received sanitary tools and equipment that helped improve and modernize their slaughterhouse. One woman-owned cooperative in crop production also received seedlings and technical support from EVCA Specialists.

Internal gender equality and PYD training

The internal gender equality and positive youth development training for regional staff included a total of 64 participants (13 female) split across Oromia (28), SNNPR (11), Amhara (7), and Tigray (18). The training created awareness on gender equality issues, principles of positive youth development, and equipped team members with skills to utilize a gender and youth lens across all VCA activities.

Gender-based violence campaign

In FY2020, VCA’s national office and regional offices engaged with others around the world to commemorate the 16 Days of Activism Against Gender-Based Violence (GBV), an international campaign that highlights the challenges women, girls, and individuals face every day concerning violence. In the part of its support, VCA’s gender and youth team organized discussion sessions to celebrate World AIDS Day (December 1), International Volunteer Day for Economic and Social Development (December 5), and International Human Rights Day (December 10). During these important and useful conversations, staff discussed the issues and relevance to achieving the project’s goals and objectives.

3.3 NUTRITION

Minimum Dietary Diversity for Women (MDD-W) is a proxy indicator for higher micronutrient adequacy and an important measurement of diet quality for the reproductive women of 15-49 years of age. Results from the 2020 annual evaluation survey showed that 63 percent of women sampled met the minimum dietary diversity threshold, consuming foods from five or more food groups over the 24-hours preceding the survey. Overall, the percentage of women who reported consuming a diet of minimum diversity, mean dietary diversity score, and knowledge level across surveyed years is detailed in Table 35.

Table 34. Value chain female and youth participation Value Chain Female (%) Youth (15-29) (%) Poultry 51 34 Dairy 38 17 MLA 27 22 Chickpea 21 15 Coffee 21 26 Maize 21 17


39

Table 35. Minimum dietary diversity, mean dietary diversity score and knowledge perception List of study 2018

baseline 2019 annual evaluation

2020 annual evaluation

Minimum dietary diversity consuming foods from ≥ 5 food groups 30.8% 54.4% 63.4% Mean dietary diversity score 4.0 5.7 6.5 Women’s knowledge perception on minimum meal frequency practice (at least three times a day)

53.7% 95.9% 99%

Although the attribution of such population-level factors is imprecise, the underlying trends reflect the positive impact of the nutrition mainstreaming and value chain initiatives conducted by VCA.

• Vegetable production training was provided for 2,166 women in the four regions. This led to increased availability and consumption of vegetables rich in vitamin A in the households, contributing to the increased dietary diversity.

• 8,720 (65 percent female) beneficiaries were reached through cooking demonstration sessions in four regions. The demonstrations were participatory, teaching good nutrition practices and preparation of diverse meals from locally produced agricultural products. Beneficiaries practiced how to prepare different meals out of foods from various food groups.

• Nutrition education, focusing on women’s dietary diversity, was mainstreamed by VCA technical team across different value chain activities for 18,404 beneficiaries (49% female) in the four project regions.

• VCA is supporting the availability of nutritious foods such as eggs, legumes, pulses, vegetables, milk, and milk products through initiatives intended to increase household production.

Impact of COVID-19 on household nutrition

COVID-19 has affected women’s access to buy and sell certain types of foods (vegetables, fruits, animal source products) using local markets. Limited access to transportation and higher transportation costs (because of the pandemic travel restrictions) has been the key factor.

COVID-19 related restrictions limited women’s access to health and nutrition information and training and support services as health and agriculture staff were not able to provide routine door-to-door services as intensively as they were before the pandemic.

People commonly avoided consuming animal source foods with the conception that animal source foods contain COVID-19 and the fear of contracting the disease. The widespread misinformation linking consumption of dairy and livestock products to COVID-19 negatively impacted both consumers who need the nutrition and producers who depend on the market.

VCA launched a 30-day nutrition messages campaign with eight local radio stations. The messages were delivered in five local languages (Amharic, Oromiffa, Tigrigna, Keffigna, and Bench) for two minutes on prime time. The messages were designed to inform the community of the importance of consuming animal source foods such as milk, butter, chicken, eggs, meat, and diversifying their diets to include food groups such as fruit and vegetables. They also included food safety information to correct the misconceptions surrounding the consumption of dairy and livestock products in the time of COVID-19.

Kalkidan Zelalem and Addis Alemayehu, amateur radio actors at Finote Selam community radio station, perform a drama on the importance of nutrition and food safety.


40

The eight radio stations have 10 million intended listeners, including coverage across all VCA implementing areas. The nutrition team encouraged beneficiaries to listen to radio messages by sharing airing schedules. Some of the radio stations such as South Bonga and Mizan radio branch received listeners’ feedback: Addis Sube from Gabuke kebele of Bench Shako Zone called the radio station and said he considered eating too much food from one food group (what he likes) as a healthy diet, but noted that eating diverse foods is important and most of them are locally available. Moreover, he appreciated how radio messages were designed to change communities’ perceptions of daily food intake. Similarly, many radio stations acknowledged their partnership with VCA as the messages were timely and served the respective communities.

Notable achievements

Nutrition-Sensitive Agriculture training has been an essential part of the VCA program. The main purpose is to increase nutrition knowledge (dietary diversification) within the agriculture context. One mechanism includes assisting service providers on how to mainstream nutrition aspects within their respective engagements. Developing several illustrative nutrition-sensitive agriculture training for smallholder farmers, subgrantees, religious leaders, and influential elders have proved an effective way to promote agriculture in nutrition within the family, farm, market, and community.

The number of individuals receiving agriculture nutrition-related professional training through USG-supported programs is an indicator of VCA. Year 4 results reached a 101 percent achievement level against the LOP target.

Key initiatives contributing to this output include the following interventions.

• 1,144 (55 percent female) agriculture and health extension workers received nutrition-sensitive agriculture training in the four regions, to provide them with the required knowledge and skills.

• 465 (16 percent female) religious leaders and influential community elders received training to solicit their approval of consumption of animal-source foods during fasting by pregnant and lactating women. Their support in transmitting nutrition messages during different religious holidays is bringing positive change to nutrition practices at the community level. In particular, it reinforces the need for pregnant and lactating women to eat animal source foods during fasting

• 184 representatives (23 percent female) from milk collection centers (MCC), farmers’ cooperative unions (FCU), common interest groups (CIGs), and VCA subgrantees received nutrition-sensitive agriculture ToT training in the four project regions. In turn, the trained stakeholders cascaded the training to their respective VCA beneficiaries.

• Mobile app nutrition messaging distribution of memory cards and utilization training was provided for 6,603 women from different value chain beneficiaries through 533 care groups in the four regions to increase their nutrition knowledge. Women, together with their husbands, practiced how to download the app from a mobile memory card and were able to listen/read the loaded messages, which was reinforced through repeated exercises.

• 22 (7 percent female) media personnel attended a media advocacy workshop aimed at leveraging the role of media in improving women’s dietary diversity in the Oromia region. Following the workshop, Oromia broadcasting network television transmitted nutrition message for 10 minutes by interviewing the Oromia nutrition coordinator.

• 22,643 nutrition promotional materials (household posters, flip charts, sermon guides, cooking demonstration recipes cards, brochures, and quick references) containing information on the importance of dietary diversity and COVID-19 prevention messages were distributed for the beneficiaries as part of awareness creation. These communication tools were utilized by beneficiaries, extension workers, VCA sub-grantees, and woreda agriculture workers.


41

• 138 women care group leaders were reached via telephone to share learning and practical approaches for using the mobile app for nutrition messaging in the four regions. Users noted that they were listening to the dietary diversification messages at home, and were accessing them without visiting the health facility, during the pandemic. 552 members also received the application and information.

• 20 previously trained religious leaders were contacted via telephone for follow-up on how they were messaging the importance of animal source food consumption to women of reproductive age during pregnancy, lactation, and illness. There were some challenges in disseminating the information due to restrictions in movement related to COVID-19 which limited the scale of nutritional messaging.

• Ten review meetings were held with 484 (47 percent female) FCU, CIG, religious leaders, and influential elders in all regions. The purpose was to update attendees on activities performed by the groups, highlight challenges, and ways forward. Through these discussions, the team learned that the attendees integrated good nutrition practices in their respective lives and the religious leaders also delivered these messages to their followers for them to incorporate into their diets as well.

Meetings/events

• TARTARE Project (Bill & Melinda Gates Foundation) workshop in Addis Ababa, aimed at developing quick and cheap metrics for assessing health risks associated with foodborne hazards.

• Diets, Affordability and Policy in Ethiopia: From Evidence to Action conference organized by IFPRI, EPHI, A4NH, Compact 2025 and PSI, provided an opportunity for VCA to display nutrition achievements. The team presented promotional materials, survey results (baseline vs. annual), success stories, and photos.

• Nutrition in agriculture workshop organized by the Food and Nutrition Coordination Office to review how the national NSA fits into the 10-year agricultural development plan.

• A quarterly review meeting was held with VCA regional and national nutrition team to review challenges phased during quarter I activities and action plans were updated accordingly.

• A Feed the Future meeting for partners and key stakeholders took place to strengthen joint nutrition-sensitive agriculture activities, establish coordination forums, and share experiences.

• Met with Growth through Nutrition (GTN) on collaborating with private sector partners; parties agreed to help strengthen and utilize private sector involvement to improve agriculture input and nutrition behavioral change.

Figure 17. Proportion of beneficiaries impacted by nutrition mainstreaming

2166

533 87

20

1840

4

1144

184

465


42

3.4 SUBAWARDS

The VCA subaward portfolio concentrates on supporting private-sector partnerships. These are designed to incentivize activities that improve local capacity for market systems development, reduce risk, and increase access to new technologies along the entire value chain. A total of 11 new subawards valued at $2.89 million were approved during Year 4 and are being implemented both regionally and nationally; these awards are highlighted in Table 36.

Table 36. FY2020 Approved Subaward

No. Subawardee Type Value Chain Project Period Start End

1 ACDI/VOCA Subcontract Maize Oct-19 May-20

2 Amanuel Dairy Processing and Marketing Cooperative Partner Fund Dairy Oct-19 Nov-21

3 CropLife Ethiopia Subcontract Maize Dec-19 Dec-20 4 Deep Dive Research & Consulting Plc Subcontract Nutrition survey Apr-20 Sep-20 5 EGAA Agricultural Input Suppliers PLc Partner Fund Maize Mar-20 Aug-21 6 Family Milk Partner Fund Dairy Dec-19 Dec-20 7 HEDBEZ Business & Consultancy Subcontract M&E survey Mar-20 Oct-20 8 HITEC Trading House Partner Fund Maize Nov-19 Oct-21 9 Maize Mechanization Tech Fund Maize Mar-20 Apr-21 10 Poultry Technologies Tech Fund Poultry Aug-20 May-21

11 Ratson Women Youth and Children Development Program (RATSON) Partner Fund Youth training Nov-19 Apr-20

Expenditure status: The overview of approved subaward budget and budget utilization is presented in Table 37 and presents an accurate record as of September 30, 2020.

Table 37. Total Approved and Obligated Subaward Budget

Subawards # of Subawards

Approved Budget (USD)

Budget Utilization

(USD)

%age Achieved

Budget Obligated

(USD)

% Obligated

(USD) Subgrants 31 8,706,302 3,539,470 41% 7,406,898 85%

Subcontracts 20 12,211,148 5,436,790 45% 8,767,992 72% Total 51 20,917,450 8,976,261 43% 16,174,890 77%

Overall expenditure of subawards reached 56 percent of the total obligated budget at the end of this period (Partner fund is 46 percent, subcontracts is 62 percent and technology fund is 50 percent expended).

Partner impact

During FY 2020, 43,748 beneficiaries, 35 percent female, benefited from partner activities. This support from partners to farmers include trainings, field days, sales of technologies, linkage with local vendors for agricultural inputs, village level demonstration of technologies and improved agricultural practices.

VCA subawardees are working toward completing their deliverables despite challenges such as slow mobilization on behalf of partners, foreign exchange issues, security issues and restrictions, delay of events and or trainings, and fluctuating market prices and consumer demand.

31%

8%

29%

22%,

2%7%

Maize Chickpea Dairy

Coffee MLA Poultry

Figure 18. Overview of approved subawards to date by value chain


43

Impact of COVID-19

During June-July 2020, VCA conducted a series of line-by-line performance reviews through virtual meetings with partners. The review process provided an opportunity to share ideas with partners on how to continue achieving targets given the existing COVID-19 situation. Some of the measures taken to mitigate impacts of COVID-19 were revision of work plans, extending the end date, budget realignment, breaking some deliverables into smaller targets to allow partners the ability to accomplish the targets. The detailed monthly monitoring of expenditure rates includes all categories of Subawards and Subcontracts. Linking this analysis with a performance evaluation on deliverables provides strategic guidance to USAID and project leadership.

VCA M&E team also conducted a survey on the impact of COVID-19 on partners (grantees and DCA loan recipients). 41 partners were interviewed, including 21 grantees and 20 DCA loan recipients. Detailed results are presented in an infographic include in Annex VI. Highlights of results include:

• 95 percent of firms noted project activity implementation was negatively affected in some way due to the pandemic. Delayed implementation and cancelled activities were top reasons for these negative effects.

• 76 percent of partners indicated a decrease in sales due to the pandemic. Majority estimated 51 – 75 percent decrease due mainly to decrease in demand and inability to travel to market.

• The main concerns for partners when making business decisions regarding COVID-19 was to maintain relationships with existing customers, continuing to be able to pay workers, and the health and safety of household and workers.ES

MONITORING AND EVALUATION (M&E) 4.1 KEY ACHIEVEMENTS

The Monitoring, Evaluation, & Learning (MEL) team maintained an eventful schedule throughout FY2020. Highlights include:

• Response to the COVID-19 pandemic by demonstrating flexibility, adaptability, and creativity in data collection approach across major survey efforts. To assess progress and impact, the MEL team adapted processes and tools to collect data via a hybrid model – combining both phone and in-person interviewing techniques. This included: o Conducted a women’s dietary diversity survey based on lessons learned from FY2018 and FY2019,

continuing to engage local data collection firm Deep Dive Research & Consulting PLC. The focused survey included 780 female participants and covered women’s knowledge, attitudes, and practices towards consumption, dietary diversity and the pandemic’s impact.

o Completed the annual performance monitoring survey (APMS) in one round (over July and August 2020) using a hybrid strategy and pared-down survey instrument, interviewing over 3,000 direct beneficiaries across six value chains with the support of Addis-based subcontractor HEDBEZ Business & Consultancy PLC.

o Conducted a partner performance monitoring survey (PPMS) with business managers and owners, including 41 partners (21 grantees and 20 DCA loan recipients) to assess sales, finance and loans, investment, and job creation with the support of HEDBEZ Business & Consulting PLC.

• Designed and managed an in-house study to assess Phase I results (2019-2020 season) from 24 wet coffee processing micro mills and dry processing units. The assessment captured key changes in membership, value and volume of sales, job creation, investment and coffee quality.

• Partnered with Social Impact on an all-M&E staff virtual training series to develop staff knowledge, skills, and practices in monitoring, evaluation, and learning (MEL) and Collaborating, Learning, and Adapting (CLA).


44

• Conducted partner staff training to strengthen the existing M&E system at the partners’ level. • Completed a detailed routine data quality assessment (RDQA) remotely focusing on selected performance

indicators tracked through FTFE VCA’s monitoring process. Based on the RDQA findings and recommendations, VCA took corrective actions which included revising data collection and indicator tracker tools.

• Completed a yield verification activity in collaboration with ACDI/VOCA staff, and incorporated results in the AMSAP final report.

• Provided ongoing support to the FTFE VCA Midterm Evaluation team commissioned by USAID. Support included responding to data requests and reviewing survey instruments and key findings of the computer-assisted telephone interviewing (CATI) survey.

• Updated the Year 5 MEL Plan with changes incorporated to include the ongoing pandemic as a critical assumption for success in the results framework.

In addition to these MEL-focused activities, the FTFE VCA MEL system is continuously adapted to account for the growth of our project activities and monitoring of over 310,000 individuals participating in FTFE VCA during its final year of implementation. The results of the APMS, PPMS and other surveys along with the lessons learned from other activities throughout Year 4 strengthen the body of knowledge from which FTFE VCA makes informed, data-driven decisions to enhance implementation and continue to achieve meaningful impact.

4.2 ROUTINE MONITORING

Tracking direct beneficiaries

In FY2020 alone, FTFE VCA reached 62,099 beneficiaries (31 percent female) who directly benefited through various interventions across all six-core value chains. To date, FTFE VCA activities have reached 280,848 beneficiaries (27 percent female cumulatively). This achievement represents 104 percent of the Year 4 cumulative target (270,000 beneficiaries) and 94 percent of the life of project target (300,000 beneficiaries). As highlighted in Figure 19, the trend shows direct beneficiary growth slowing beginning in late Q2 of FY2020 driven largely by the COVID-19 pandemic, which limited field operations and group events.

Notably, in the six months leading up to the pandemic (October 2019 to March 2020), FTFE VCA was adding an average of over 8,000 new direct beneficiaries per month. Thus, in the absence of COVID-19, FTFE VCA was on track to greatly exceed its LOP target of 300,000 direct beneficiaries by the end of Year 4. In response to the pandemic, FTFE VCA’s technical team pivoted to supporting beneficiaries via phone extension services. The M&E team also modified routine data collection instruments to effectively capture beneficiaries reached through phone extension services.

The distribution of beneficiaries across value chains in FY2020 shows maize accounting for the greatest share (27 percent) of beneficiaries followed closely by dairy (25 percent). These percentages are consistent with the cumulative share of beneficiaries reached to date with maize accounting for 35 percent, followed by dairy (24 percent). Regarding the FY2020 regional distribution of beneficiaries, Amhara accounts the greatest share (34 percent) followed by SNNP (31 percent). Similarly, the cumulative share of beneficiaries by region also shows Oromia accounting for the greatest share (37 percent) followed by Amhara (28 percent). Overall, the distribution of beneficiaries across both value chains and targeted regions is as anticipated.


45

4.3 ANNUAL PERFORMANCE MONITORING SURVEY

The FTFE VCA MEL team, with the support of local research firm HEDBEZ Business & Consultancy PLC (HEDBEZ), conducted the third annual performance monitoring survey (APMS) in July and August 2020. The study involved a quantitative sample survey of beneficiary prfoducers.2 The study had the following objectives:

• Understand the agro-economic reality faced by FTFE VCA beneficiary farmers;

• Collect evidence on how the activity is addressing key challenges and thus improving farmers’ earning potential by reducing crop loss, barriers to market entry, and other limitations; and,

2 FTFE VCA direct beneficiaries involved in crops (maize, chickpea, coffee), poultry and livestock (dairy and MLA) value chains.

Figure 19. Cumulative number of direct beneficiaries In March 2020, COVID-19 forced many activities to shift to remote support.

Figure 20. Cumulative Share of Beneficiaries – Regions and Value Chains


46

• Identify successes and challenges to inform FTFE VCA’s Year 5 implementation approach.

• The design, findings, lessons learned and path forward presented below allow for evidence-based decision-making as implementation activities continues into their final year.

The FY2020 APMS involved a quantitative method of data collection aimed at generating results for key performance indicators. The data was collected through a hybrid approach; including both face-to-face interviews and phone interviews (both using mobile devices) with direct beneficiary producers. The overwhelming majority (94 percent of interviews) were collected face-to-face following social distancing protocols. The questionnaire was developed in accordance with the performance indicator reference sheets (PIRS) relevant to FTFE VCA and the study’s objectives. The final English questionnaire was translated into Amharic, Afaan-Oromo and Tigrigna languages.

The APMS used a two-stage cluster sample design with systematic selection of participants for the quantitative data collection, equivalent to survey design option 1 of the Feed the Future Participant-Based Survey guidance document. All six value chains, including poultry (formally introduced as a core value chain in FY2019), were included in the sample design using a proportional sampling method. For phone data collections, the sampling frame consisted of FTFE VCA beneficiaries with mobile phone numbers available. The sample size for FY2020 was 3,063, exceeding that of FY20193 by 44 percent, which was a deliberate decision to reduce the margin of error and ensure strong representation across value chains. Details on the steps and formulas used to calculate the sample size can be found in Annex II.

Key results from the FY2020 APMS are summarized below by value chain. FY2020 APMS results are also compared with the previous year and reasons for major deviations are explained when necessary.

Table 38. Farmer’s gross margin and yield for crop value chains

Indicator Value Chain FY2020 Results % Change FY2019

Results Units

Farmer's gross margin per hectare obtained with USG assistance

Chickpea 726 26% 575 USD / Ha Coffee 841 -6% 890

Maize 656 28% 511 Yield of targeted agricultural commodities among program participants with USG assistance

Chickpea 1.01 -2% 1.03 MT / Ha Coffee 0.42 -13% 0.48

Maize 3.65 26% 2.89

3 The sample size for FY2019 APMS was 2,097.


47

Maize: Overall, FY2020 maize production increased largely due to productivity improvements. Based on the APMS results, yield for FY2020 was 26 percent higher than FY2019, increasing from 2,894 kg/ha (FY2019) to 3,646 kg/ha (FY2020). In FY2020, maize producers generated additional income per hectare of maize, with gross margin increasing by 28 percent from US$511 (FY2019) to US$656 (FY2020) per hectare. This increase can largely be attributed to a combination of higher yields and more favorable maize prices. However, FY2020 production costs per hectare increased sharply, more than doubling from FY2019, and thus negatively impacting farmer net earnings. Rising production costs can be attributed to significantly higher land rental costs, elevated seed and fertilizer prices and use of increased quantity of seed and fertilizer.

Chickpea: During FY2020, chickpea yield was essentially flat (-2 percent) from the previous year. These results are aligned with field monitoring findings that underscored both water logging and disease concerns that adversely affected productivity. However, in FY2020 chickpea producers gained 26 percent more income per hectare of chickpea produced than the previous year. This increase is largely due to favorable prices that were 26 percent higher on a per kilogram basis, while production costs essentially remained flat when compared to FY2019. Encouragingly, FY2020 average sales per hectare has also increased by 36 percent over the previous year.

Coffee: During FY2020, coffee productivity was 13 percent lower than the previous year, declining from 480 kg/ha (FY2019) of green coffee to 420 kg/ha (FY2020)4. Deeper analysis of FY2020 survey data indicated that over 10 percent of the 551 sampled coffee farmers (59 cases in all) produced less than 100 kg/ha. During follow-up validation calls conducted by the FTFE VCA MEL team, farmers highlighted the following causes for low coffee yield:

• A number of farmers stumped their trees in order to reverse low coffee productivity and rejuvenate their tree stock. To date, stumped coffee trees have not yet reached maturity.

• Farmers noted that their plots were newly planted with coffee seedlings that are not yet in production. The process of replacing old coffee trees with improved seedling varieties is encouraged and directly supported through FTFE VCA’s nursery program.

• In some area, farmers noted that heavy rains hindered coffee production.

Similar to yield, FY2020 gross margin was slightly lower (-7 percent) when compared to the previous year. The modest decrease in gross margin was partially offset by a 6 percent increase in price per kilogram when compared to FY2019. It is worth noting that the base price of US$2.0/kg at farm gate shows a significant premium compared to the record low global commodity price levels of around US$1.20/kg of green coffee. Lastly, coffee production costs in FY2020 were similar when compared to the previous year.

Table 39. Farmer’s gross margin and yield for livestock value chains Indicator Value Chain FY2020

Results Change FY2019 Results Unit

Farmer's gross margin per animal obtained with USG assistance

Cattle 216.35 194% 73.64

USD / Animal Goats 23.45 18% 19.83 Sheep 26.01 -21% 33.10 Poultry 2.32 -8% 2.51 Milk 605 80% 336

Yield of targeted agricultural commodities among program participants with USG assistance

Cattle 144.68 73% 83.63 Kg / Animal Goats 8.99 3% 8.70

Sheep 8.35 -32% 12.21 Poultry 1.04 -22% 1.34 Milk 1,198 20% 1,000 Liters/Animal /

Year

4 Compared with baseline green coffee yield of 650 kg/ha (FY2018), FY2020 coffee yield is down 35 percent.


48

Milk: The 20 percent increase in FY2020 productivity of milk over the previous year is due largely to the prevalence of improved breeds in dairy herds as 73 percent of dairy beneficiaries reported improved breeds, versus just 57 percent in FY2019. Similarly, over 65 percent of all milking cows owned by dairy beneficiaries are improved breeds, versus 56 percent in the previous year. Gross margin gains were due primarily to the increased prevalence of improved breeds and therefore improved productivity. The increase in price (36 percent) also contributed to increased gross margin in FY2020.

Cattle: In FY2020, gross margin from cattle nearly tripled largely due to 73 and 42 percent increases in yield and price, respectively. Beneficiaries appear to be spending more on fewer animals. Cattle producers spent ETB 5,537 in FY2019 managing their cattle versus ETB 6,581 in FY2020, on average. Notably, the cost of concentrate, minerals/salts, and vitamins reportedly increased between 14 and 20 percent from the previous year. The cost per animal (in USD) increased 16 percent despite a 15 percent increase in the exchange rate while herd slightly decreased.

Poultry: Poultry is relatively new value chain for FTFE VCA. In FY2019, activities began in earnest following a cost benefit analysis and pilot program. FY2020 results indicate a slight decrease in gross margin and productivity. Despite the price of poultry experiencing a significant increase (143 percent) as compared to the previous year, its impact on farmer’s income was offset by the higher exchange rate, higher costs, and slightly lower productivity. To identify drivers of the cost increase, the MEL team conducted a validation assessment of 18 randomly selected beneficiaries that exhibited high production costs. Accordingly, the following reasons were noted for the high increase:

• Fifteen farmers incurred costs in FY2020 for poultry layer buildings, which, in turn, increased their overall costs. Five poultry farmers are new entrants to poultry farming who were required to construct a poultry layer to start their business. In addition, ten farmers built a poultry house as they learned from FTFE VCA trainings on how to improve their business by constructing a better poultry layer house. This is a clear reflection of the impact of the FastTrack and training that encourages poultry farms to build a better housing and this was more visible in FY2020, thus contributing to the higher costs.

• Almost all respondents were concerned about the steady increase in the price of concentrate feed, which increased from between 20 and 50 percent as compared to the previous year. The price increase of medicine, vitamins and labor were also mentioned as major contributors for higher total poultry costs when compared to FY2019.

4.4 PARTNER PERFORMANCE MONITORING SURVEY (PPMS)

FTFE VCA, through subcontracted research firm HEDBEZ Business & Consulting PLC, conducted a Partner Performance Monitoring Survey (PPMS) interviewing a total of 41 grantees and DCA loan beneficiary firms across all four regions. The objective of the PPMS is to collect data on output and outcome level indicators including sales and income, finance and loans, investment, job creation and other key indicators over FY2020. The PPMS includes verification of data gathered from source documents, partner databases and direct observations. The survey relied primarily on face-to-face interviews with partners and phone surveys in a handful of cases. Key documents, including sales receipts, payroll details and contract agreements were verified from source documents. Copies of sample documents were also gathered from partners. The following are key findings from the survey:

• In FY2020, approximately $47.7 million in sales were recorded by FTFE VCA supported grantees, DCA loan beneficiary firms and technology fund supported micro, small and medium enterprises (MSMEs) across all value chains. The major sales products include live animals, hermetic storage technologies (HST), coffee, raw and processed milk and improved seed. FY2020 firm sales exceeded that of previous year sales ($9.1 million) by more than four-fold largely due to the increased number of firms supported. The increased momentum of FTFE VCA partners such as MCCs to operate in a better capacity also contributed to increased sales in FY2020.


49

• Some of the FTFE VCA supported firms completed export sales valued at over US$13.2 million, the majority of which were coffee exports.

• Clients and counterparts made new investments valued at over US$11.4 million out of which 52percent (USD 5.9 million) was the investment leveraged by clients. Major investment areas included production, marketing, and processing of value-added production.

• As a result of expanded investment, a total of 780 full-time equivalent (FTE) new jobs were created. In addition, FTFE VCA’s support provided the opportunity for 781 existing FTE jobs to continue throughout FY2020, providing for 1,560 jobs (40 percent held by females). Key temporary and permanent job opportunities were in project management, technical production positions, processing and marketing, sales, loading and unloading, coffee drying and cleaning, and livestock management among others.

• Partner support to smallholder farmers has improved their productivity and boosted their income driven mainly by increased access to improved inputs like seeds and marketing support through contract farming and market linkages.

4.5 IMPACT OF COVID-19 SURVEY

The onset of the COVID-19 pandemic greatly restricted travel and limited many business activities. To assess the impact of the pandemic on the decision-making, production and sales activities of both smallholder farmers and agribusinesses, FTFE VCA adjusted both the APMS and PPMS survey instruments to incorporate timely questions to assess the ongoing impact of the pandemic. The results indicated COVID-19 has negatively affected both production and marketing business of smallholder beneficiary farmers and agribusiness firms who were disproportionately negatively affected. Unfortunately, most FTFE VCA partners have delayed, or in some cases, cancelled activities due to the pandemic. (See Annex VI for infographics highlighting key findings from both surveys).

4.6 LEARNING & ADAPTATION

Year 4 introduced a number of challenging external developments including the global pandemic and country-wide security issues which have adversely impacted implementation of planned activities. Nonetheless, FTFE VCA has managed to rapidly adapt, achieving commendable results. Some of the key lessons for Year 5 implementation and beyond are as follows.

• Use of a hybrid data collection method is crucial given the limitations to conducting face-to-face interview. Thus, moving into Year 5 phone surveys will continue to serve as an alternative method of data collection during such challenging circumstances. Developing multiple contingency plans, trimming survey instruments, verifying beneficiary phone numbers early and adjusting enumerator training, focusing on digestibility are among the major M&E tasks to be accomplished to effectively implement data collection during the pandemic. In this regard, Fintrac has developed a brief guide for a COVID-19 responsive MEL plan, which was also posted in Agrilinks.org. Key learnings are highlighted as follows - o Develop a Plan A, B and C: With COVID-19 affecting staff and sub-contractor mobility at all levels,

the development of a contingency plans is essential when planning our data collections. o Be strategic about survey content and length: Minimize the length of the survey instrument as

much as possible since both enumerators and respondents are working under challenging circumstances when conducting phone surveys.

o Verify beneficiary phone numbers early: Maintaining an accurate and up-to-date beneficiary database it is critical, allowing MEL staff to double-check phone numbers and schedule interviews well before going ‘live’ with a survey.

o Adjust enumerator training, focusing on digestibility: Shifting to phone-based data collection requires not only adjustments to data collection techniques but also reformulating both the duration and content of enumerator training.


50

• For some value chains like coffee, interventions aimed at increasing productivity require more time to generate quantifiable impact. For example, it takes around 3 years for a coffee seedling to mature and produce its first fruit while renovated coffee trees require two to three years to bear fruit. These interventions are largely promoted by FTFE VCA.

• Given pandemic-related uncertainty, adapting to COVID-19 through phone extension services, virtual monitoring, training in smaller groups while keeping the recommended social distance and use of protective materials for trainees has to be continuously promoted. FTFE VCA’s successful organization of a virtual site visit by USAID is a best practice that should be scaled up in the following year.

• Overcoming the impact of COVID-19 is a primary area of engagement to prevent firms from going out of business. FTFE VCA continues to support firms to increase their resilience. Examples include rescheduling deliverables and adjusting loan repayment periods, and facilitating additional loans through DCAs and no-cost extensions of the partnership agreement.

• Since new beneficiaries are continually added to FTFE VCA’s annual survey design, which aims to assess the impact of FTFE VCA, the MEL team may need to consider systematic and purposive sampling of beneficiaries to include more focused representative beneficiaries in each value chain. Hence, this may require developing new M&E processes and systems to continue to capture results representative of the entire FTFE VCA population in aggregate, as well as results specific to certain groups of interest.

• As FTFE VCA enters its fifth and final year, the MEL team is expanding its focus beyond the life of the project. Beginning with identifying key legacies and developing data collection plans, FTFE VCA MEL will conduct case study-like assessments utilizing both quantitative and qualitative data collection methods to illustrate the impact of its interventions. Examples include evaluating milk collection centers across the country and the agrodealership scheme.

CONCLUSION Year 4 has seen its fair share of challenges. Intermittent security issues restricted field-based activities and resulted in last-minute cancellations of events. Uncertainties with the economic environment and distortions caused by foreign exchange shortages are proving challenging for partners, particularly on imports.

In addition, the COVID-19 pandemic has adversely affected VCA’s work. Restricted travel movements and other mitigation policies made it much more difficult to reach beneficiaries and forced management to re-think established extension mechanisms, including large-scale events, trainings, workshops, demonstrations, and field days. An 8-week period of telework provided time and space to implement a comprehensive set of COVID-19 mitigation policies, and updated procedures. All of the reconfigured offices provide a safe environment for staff and guests and are open for business. The relaxation of travel restrictions in the last few weeks has allowed field teams to support a higher level of technical assistance for extension and essential services, while fully complying with updated guidelines for social distancing and meetings that align with current government regulations.

As mentioned throughout this report, VCA has spent significant resources assessing the impact of this new environment across different regions, within value chains and businesses in general, and throughout the internal systems and work plan. The resulting learning and adaption process is guiding the VCA response to dynamic threats and opportunities.

In the last year of implementation, the project focus is continuing to work with private-sector partners and scale up commercial impact and sustainability. The strong relationships with AGP at national and regional levels will leverage public-sector resources to extend the reach and awareness of proven technologies. The collaboration with other Feed the Future programs provides new opportunities and synergies to optimize USAID resources.


51

ANNEX I. PERFORMANCE INDICATORS

Indicator Disaggregate Baseline Year 4 LOP/Cumulative

Achievement Unit Year Valu

e Chan

ge Resul

t Targ

et Achieved

Result

Target

Achieved

Purpose: Improve the Performance of the Agricultural Sector

1 Number of individuals participating in USG food security programs 0 n/a 286,583

279,000 103% 236,6

42 310,0

00 76% Individuals

2 Number of direct project beneficiaries 0 n/a 280,848

270,000 104% 230,7

46 300,0

00 77% Beneficiaries

3 Number of indirect project beneficiaries 0 n/a 2,058,432

1,080,000 191% 3,837,

526 1,200,

000 320%

4

Farmer's gross margin per hectare, per animal or per cage obtained with USG assistance

Chickpea 2018 616 18% 726 690 105% 726 709 102%

USD / Ha Coffee 2018 1,307 -36% 841 1,463 57% 841 1,503 56%

Maize 2018 477 38% 656 534 123% 656 548 120%

Cattle 2018 179 21% 216 200 108% 216 206 105%

USD / Animal

Goats 2018 18 28% 23 20 115% 23 20 115%

Sheep 2018 29 -10% 26 32 81% 26 33 79%

Poultry 2019 2.51 -8% 2 2.82 67% 2.32 2.89 67%

Milk 2018 267 127% 605 299 202% 605 307 197%

5 Average household net income from targeted agricultural commodities 2018 1,272 76% 2,239 1,425 157% 2,239 1,463 153% USD /

Household Sub-Purpose 1: Increase Nutrition-Sensitive Productivity of Targeted Value Chains Inclusive of Women and Youth

6

Yield of targeted agricultural commodities among program participants with USG assistance

Chickpea 2018 1.08 -6% 1.01 1.24 81% 1.01 1.30 78%

MT / Ha Coffee 2018 0.65 -35% 0.42 0.75 56% 0.42 0.78 54%

Maize 2018 3.25 12% 3.65 3.73 98% 3.65 3.90 94%

Cattle 2018 188.73 -23% 144.6

8 217.0

4 67% 144.68

230.25 63%

Kg / Animal Goats 2018 9.93 -9% 8.99 11.42 79% 8.99 12.11 74%

Sheep 2018 11.36 -26% 8.35 13.06 64% 8.35 13.86 60%

Poultry 2019 1.34 -22% 1.04 1.54 68% 1.04 1.63 64%

Milk 2018 982 22% 1,198 1,129 106% 1,198 1,178 102% Liters / Animal / Year


52

Output 1.1: Strengthened and Scaled-up Input Supply System’s Delivery of Affordable, High-quality Technologies and Services

7 Value of inputs purchased by smallholder farmers, disaggregated by women, men, and youth as a result of USG assistance 2018 9.3 216% 29.4 10.2 288% 46.5 33.6 138% USD

(Million)

8 Number of kebeles which have direct input supply systems, including the expansion of the Direct Seed Marketing Program, as a result of USG assistance

0 n/a 1,217 430 283% 1,331 660 202% Kebeles

Output 1.2: Expanded Use of Improved Technologies and Practices by Male and Female Smallholders Including Youth

9 Number of individuals in the agriculture system who have applied improved management practices or technologies with USG assistance

2018 32,149 519% 199,0

64 150,0

91 133% 199,064

188,286 106% Individuals

10 Number of hectares under improved management practices or technologies with USG assistance 2018 12,65

6 646% 94,462

59,086 160% 94,46

2 74,12

3 127% Hectares

11 Number of individuals who have received USG-supported short-term agricultural sector productivity or food security training 0 n/a 40,50

3 77,00

0 53% 235,923

236,000 100% Individuals

Output 1.3: Increased Availability of, Access to, and Consumption of Safe, Diverse Foods

12 Percentage of female participants of USG nutrition-sensitive agriculture activities consuming a diet of minimum diversity 2018 30.8 106% 63.4 36.9 172% 63.4 40.0 159% Percent

13 Number of individuals receiving nutrition-related professional training through USG-supported programs 0 n/a 1,609 2,000 80% 4,381 4,000 110% Individuals

Sub-Purpose 2: Strengthened Inclusive Market Systems and Trade

14 Value of annual sales of farms and firms receiving USG assistance

Farms

USD (Million)

Chickpea 2018 0.44 868% 4.26 1.88 227% 6.41 8.19 78%

Coffee 2018 3.95 556% 25.90 9.41 275% 38.40 31.46 122%

Maize 2018 2.64 439% 14.23 6.39 223% 22.68 29.26 78%

Cattle 2018 18.55 99% 36.99 8.93 414% 63.66 55.93 114%

Goats 2018 0.50 26% 0.63 0.45 140% 1.55 2.25 69%

Sheep 2018 1.54 26% 1.94 1.29 150% 4.65 4.02 116%

Poultry 2019 0.33 830% 3.07 0.45 682% 3.47 0.94 369%

Milk 2018 3.16 808% 28.68 5.87 489% 37.18 31.29 119%

Firms

Chickpea 2019 0.00 n/a 0.01 0.00 n/a 0.01 0.00 n/a


53

Coffee 2019 0.80 3136% 25.89 0.88 2942

% 26.69 1.85 1443%

Maize 2019 0.00 n/a 0.70 0.00 n/a 0.70 0.00 n/a

Cattle 2019 0.00 n/a 5.40 0.00 n/a 5.40 0.00 n/a

Goats 2019 0.00 n/a 0.54 0.00 n/a 0.54 0.00 n/a

Sheep 2019 0.00 n/a 1.14 0.00 n/a 1.14 0.00 n/a

Poultry 2019 0.00 n/a 1.59 0.00 n/a 1.59 0.00 n/a

Milk 2018 0.02 31850% 6.39 0.68 940% 8.08 1.45 557%

Egg 2019 0.00 n/a 0.84 0.00 n/a 0.84 0.00 n/a Durable equipment and machinery 2018 0.00 n/a 0.05 0.14 36% 0.07 0.51 14%

Seeds and planting material 2019 0.00 n/a 0.11 0.00 n/a 0.11 0.00 n/a Other non-durable inputs, such as fertilizer and pesticides 2018 0.02 18800

% 3.78 1.80 210% 4.35 4.23 103%

Production support services 2017 0.10 -40% 0.06 0.15 40% 0.06 0.30 20% Post-harvest storage and processing equipment 2018 0.01 7400

% 0.75 1.09 69% 1.06 2.91 36%

Processed products/value added products 2019 0.00 n/a 0.41 0.00 n/a 0.41 0.00 n/a

Output 2.1: Strengthened Market Access & Organization of the Market System

15 Postharvest loss at farm gate (% of harvest)

Chickpea 2018 8.0 n/a n/a n/a n/a n/a 4.8 n/a

Percent Coffee 2018 7.7 n/a n/a n/a n/a n/a 1.7 n/a

Maize 2018 13.4 n/a n/a n/a n/a n/a 4.3 n/a

16 Proportion of production sold by targeted beneficiaries for selected products

Chickpea 2018 68.7 -36% 44.1 75.6 58% 44.1 79.0 56%

Percent

Coffee 2018 57.7 26% 72.7 59.4 122% 72.7 60.6 120%

Maize 2018 50.6 -20% 40.7 55.7 73% 40.7 58.2 70%

Goats 2018 76.3 -22% 59.7 83.9 71% 59.7 87.7 68%

Sheep 2018 82.2 -15% 69.6 90.5 77% 69.6 94.6 74%

Poultry 2019 89.6 -9% 81.8 94.1 87% 81.8 95.9 85%

Milk 2018 79.3 -54% 36.7 87.3 42% 36.7 91.2 40%

Output 2.2: Increased Access to Financial & Other Supporting Services


54

17 Value of new USG commitments and private sector investment leveraged by the USG to support food security and nutrition 0.00 n/a 11.40 4.05 281% 24.11 13.56 178% USD

(Million)

18 Value of agriculture-related financing accessed as a result of USG assistance 0.00 n/a 3.37 1.20 281% 7.35 6.38 115% USD

(Million)

Output 2.3: Increased Access to Non-Financial Supporting Services

19 Number of private sector advisory service associations/groups supported in target woredas 0 n/a 222 140 159% 222 192 116% Associations

/ Groups

Output 2.4: Strengthened Lead Firms, Including Agribusinesses, Agro-processors, and Farmer Cooperative Unions (FCUs)

20

Number of firms (excluding farms) or civil society organizations (CSOs) engaged in agricultural and food security-related manufacturing and services that have increased profits or become financially self-sufficient with USG assistance

0 n/a 24 15 160% 46 40 115% Firms/CSOs

21 Number of full-time equivalent (FTE) jobs created with USG assistance 0 n/a 1,560 2,000 78% 1,560 2,500 62% FTE Jobs

Output 2.5: Increased Trade in Domestic, Regional and International Markets

22 Value of targeted agricultural commodities exported with USG assistance

Chickpea 0.00 n/a 0.00 1.00 0% 0.00 2.70 0%

USD (Million)

Coffee 0.00 n/a 13.16 3.30 399% 15.77 9.90 159%

Maize 0.00 n/a 0.00 0.00 n/a 0.00 1.70 0%

Cattle 0.00 n/a 0.00 1.00 0% 0.91 3.15 29%

Goats 0.00 n/a 0.00 0.12 0% 0.00 0.36 0%

Sheep 0.00 n/a 0.00 0.53 0% 0.65 1.68 39%

PICS Bag 0.00 n/a 0.13 0.00 n/a 0.13 0.00 n/a

23 Volume of targeted agricultural commodities exported

Chickpea 0.00 n/a 0.00 1.54 0% 0.00 5.31 0%

MT (Thousands)

Coffee 0.00 n/a 2.89 1.43 202% 3.98 4.37 91%

Maize 0.00 n/a 0.00 0.00 n/a 0.00 15.00 0%

Cattle 0.00 n/a 0.00 0.60 0% 0.15 88.78 0%

Goats 0.00 n/a 0.00 0.11 0% 0.00 5.17 0%

Sheep 0.00 n/a 0.00 0.50 0% 1.52 8.64 18%

PICS Bag 0.00 n/a 250,000 0.00 n/a 250,0

00 0.00 n/a Bags


55

24

Number of commercial partnerships or market contracts signed between producer groups or cooperatives (supported by the program) and domestic/international agribusiness actors (processors, wholesalers, retailers, exporters, etc.) for selected value chains

0 n/a 1,173 55 2133% 1,230 145 848% Partnerships

/ Contracts

Sub-Purpose 3: Improved Enabling Environment In Support Of Agricultural Transformation Output 3.1: Strengthened Capacity of MoANR and Improved Cooperation With ATA At Federal, Regional, and Local Levels For Developing, Implementing, and Monitoring Policies

25 Number of agricultural and nutritional enabling environment policies analyzed, consulted on, drafted or revised, approved and implemented with USG assistance

0 n/a 0 5 0% 8 10 80% Policies

Output 3.2: Strengthened Public and Private Sector Dialogue Related to Policy Review and Implementation


0 n/a 0 2 0% 7 10 70% Policies

Output 3.3: Strengthened Policies, Regulations, and Laws to Support an Improved Business and Investment Environment Around the Selected Value Chains, Particularly Through the New Alliance Cooperation Framework


0 n/a 0 3 0% 11 7 157% Policies

Cross Cutting

28 Number of hectares under improved management practices or technologies that promote improved climate risk reduction and/or natural resources management with USG assistance

2018 10,279 677% 79,85

3 49,26

9 162% 79,853

63,462 126% Hectares

29 Percentage of participants in USG-assisted programs designed to increase access to productive economic resources who are youth (15-29)

0.0 n/a 20.1 25.0 80% 20.1 25.0 80% Percent

30 Percentage of female participants in USG-assisted programs designed to increase access to productive economic resources 0.0 n/a 30.1 27.0 111% 30.1 30.0 100% Percent


56

ANNEX II. PERFORMANCE MONITORING SURVEY FTFE VCA MEL, with the help of local research firm HEDBEZ Business & Consultancy PLC (HEDBEZ), conducted the third annual performance monitoring survey (APMS) in one round, with quantitative data collection concluding in September 2020. The study had three objectives:

1. Understand the agro-economic reality faced by FTFE VCA beneficiary farmers;

2. Collect evidence on how the activity is addressing those challenges and thus improving farmers’ earning potential by reducing crop loss, barriers to market entry, and other limitations; and,

3. Identify successes and challenges to inform FTFE VCA’s Year 4 implementation.

In addition to the above objectives, the Year 4 APMS incorporated focused study on postharvest loss in order to capitalize on the sample size. The design, key findings, lessons learned and way forward presented below allow for evidence-based decision-making as implementation continues into Year 5.

Methodology

Design for quantitative sample survey. The FY2020 APMS used a two-stage cluster sample design with systematic selection of participants for the quantitative data collection, equivalent to survey design option 1 of the Participant-Based Survey Sampling Guide for Feed the Future Annual Monitoring Indicators (Pa-BS Sampling Guide)5. HEDBEZ selected number of hectares under improved management practices and number of individuals applying improved management practices by value chain as the key indicators for sample design. The target number of beneficiaries (N), standard deviation (δ) and expected values (µ) of performance indicators must be known in order to calculate an initial sample size. HEDBEZ used FY2019 APMS means and standard deviations.

Inputs for sample size calculation

Value Chain (c)

Beneficiary Population

(Nc)

Hectares Under Improved Mgmt. Practice (i)

Individuals Applying Improved Mgmt. Practices (i)

Mean (x̅) Std. Dev (δ) Target (Ňc) Std. Dev (δ) Chickpea 19,199 0.434 0.444 12,034 0.340 Coffee 26,505 0.802 0.857 19,043 0.381 Maize 81,742 0.855 0.891 49,963 0.163 Dairy 44,997 0.155 0.153 25,615 0.339 MLA 16,214 0.084 0.252 11,165 0.316

Poultry 8,860 8,860 0.237 Total 197,517 n/a n/a n/a n/a

5 Page 32, https://www.agrilinks.org/post/participant-based-survey-sampling-guide-feed-future-annual-monitoring-indicators

https://www.agrilinks.org/post/participant-based-survey-sampling-guide-feed-future-annual-monitoring-indicators


57

The steps and formulas used to calculate the sample size are as follows:

1. Calculating the initial sample size (ninitial). We calculate the initial sample size by value chain for each of the two indicators using Equation 1, as per the Pa-BS Sampling Guide.

(Equation 1) 𝑛𝑛𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖_𝑖𝑖𝑖𝑖 =𝑁𝑁�𝑖𝑖𝑖𝑖2 ∗ 𝑧𝑧2 ∗ 𝛿𝛿𝑖𝑖𝑖𝑖2

𝑀𝑀𝑀𝑀𝑀𝑀𝑖𝑖𝑖𝑖2

Where:

Ňic is the target population reached by FTFE VCA by March 2020 for the ith indicator and cth value chain.

z is the critical value corresponding to a 95% “confidence level” from the Normal Probability Distribution. This is fixed at z = 1.96.

δic is the standard deviation of the distribution of FY2019 participant data for the ith indicator and cth value chain commodity.

MOEic is the margin of error or half-width of the confidence interval around the estimate of a total, defined as the expected value (μic) of the ith indicator and cth value chain commodity multiplied by (p), the acceptable level of error (MOEic=μic*p). The acceptable level of error (p) is fixed at 0.10 for this study.

μic is the expected value of the ith indicator and cth value chain commodity, defined as the mean (x̅ic) of the ith indicator and cth value chain commodity multiplied by the target population (Nic) for the ith indicator and cth value chain commodity (μic = x̅ic* Nic).

2. Adjustment 1 (finite population correction). This adjustment is necessary only if the initial sample size for the ith indicator and cth value chain commodity is ≥ 5 percent of the target population for the ith indicator and cth value chain commodity. When this condition is true, we use Equation 3 to adjust ninitial_ic and obtain nadj1_ic.

(Equation 2) 𝑎𝑎𝑎𝑎𝑎𝑎𝐹𝐹𝐹𝐹𝐹𝐹_𝑖𝑖𝑖𝑖 =1

(1 +𝑛𝑛𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑁𝑁𝑖𝑖𝑖𝑖

)

(Equation 3) 𝑛𝑛𝑖𝑖𝑎𝑎𝑎𝑎1_𝑖𝑖𝑖𝑖 = 𝑛𝑛𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖_𝑖𝑖𝑖𝑖 ∗ 𝑎𝑎𝑎𝑎𝑎𝑎𝐹𝐹𝐹𝐹𝐹𝐹_𝑖𝑖𝑖𝑖

3. Adjustment 2 (design effect). This adjustment is required for multi-stage sampling designs to account for the greater sampling error due to homogeneity within clusters. For this survey, the design effect (deff) is fixed at 2 and we use Equation 4 to adjust nadj1_ic and obtain nadj2_ic. However, the sample size was reduced by a factor of 1.5 to remain cost realistic.

(Equation 4) 𝑛𝑛𝑖𝑖𝑎𝑎𝑎𝑎2_𝑖𝑖𝑖𝑖 = 𝑛𝑛𝑖𝑖𝑎𝑎𝑎𝑎1_𝑖𝑖𝑖𝑖 ∗ 𝑎𝑎𝑑𝑑𝑑𝑑𝑑𝑑

4. Adjustment 3 (cost effectiveness). The adjusted sample size calculated for MLA and poultry was still too large to implement with the available resources, and additional adjustment was made. Ultimately poultry, MLA, coffee, and chickpea are 3 percent of targets while maize and dairy are 1 percent of the target.

5. Final sample size. We calculate the final sample size (nfinal) by summing the largest calculated sample size between the two indicators across value chain commodity, for a total minimum sample size of nfinal = 3,000.


58

Details of sample size calculation

Description Fixed values Chickpea Coffee Maize Dairy MLA Poultry

Hectares Hectares Hectares Hectares Individuals Sales

1

Ňic Target population 19,199 26,505 44,997 81,742 11,165 8,860

δic Standard deviation 0.444 0.857 0.891 0.153 0.316 5.039

p Acceptable level of error 10%

μic Expected value (μic = x̅ic* Nic) 8,329 21,247 38,479 12,638 11,165 30,489,032

MOEic Margin of error (MOEic=μic*p) 833 2,125 3,848 1,264 1,116 3,048,903

z Critical value for 95% confidence level 1.96

ninitial_ic Initial sample size 402 439 418 376 38 824

2 ninitial_ic /

Nic Sample proportion 2% 2% 1% 0% 0% 9%

nad1j_ic Adjusted sample size (1) 402 439 418 374 38 754

3 deff Design effect 2

nad2j_ic Adjusted sample size (2) 804 879 835 748 77 1,507

4 nad3j_ic Adjusted sample size (3) 603 659 626 561 58 1,130

5 nfinal Final sample size 3,000 400 550 700 600 400 350


59

Sample distribution by region and value chain Region Chickpea Coffee Maize Dairy MLA Poultry Total

Amhara 170 35 245 167 92 128 837 Oromia 162 298 256 253 130 130 1,229 SNNPR 0 231 113 128 126 56 654 Tigray 75 0 74 72 72 50 343 Total 407 564 688 620 420 364 3,063

FTFE VCA prepared two sample frames for the sample selection: one for the primary sampling units (PSUs) or kebeles, and one for the secondary sampling units (SSUs) or the direct beneficiaries. The sample frame for the direct beneficiaries contained information on producers who had joined the project prior to March 2020. We distributed nfinal between the regions based on the proportion of the target population in each value chain. Using the suggested 15-35 participants per cluster from the Pa-BS Sampling Guide (pg. 55), we sampled between 15 and 32 beneficiaries per cluster depending upon the population of that cluster, with an average of 18 beneficiaries per kebele. In total the minimum sample includes 167 kebeles. resulting in a final actual sample size of 3,063 beneficiaries.

Sample weights developed consider the two-stage cluster sample design and second-stage sample frame of direct beneficiary producers who joined the project prior to March 2020. The weight for each surveyed producer is the inverse of their probability of selection (Equation 2) adjusted for non-response, and effectively equal to the number of units in the population each respondent in the baseline survey. Results presented are the sample-weighted totals, means and proportions of the annual performance monitoring survey.

(Equation 5) 𝑤𝑤𝑖𝑖𝑎𝑎 =1

𝑤𝑤1𝑎𝑎 ∗ 𝑤𝑤2𝑎𝑎

where: wij = the overall weight w1j = the weight of the jth cluster selected w2ii = the weight of the ith household in the jth cluster selected

Note that to acknowledge the achievements of the project, output-level indicators such as the number of individuals participating, direct beneficiaries, and individuals trained include persons who participated in project activities through the end of September 2019. Outcome-level indicator results (those that are derived from the sample survey), however, consider a population of producers that actively engaged with the project before March 2019 due to the two-part data collection strategy. As a result, sample survey-based, sample-weighted totals are conservative estimates.


60

ANNEX III. MAIZE SEED & SSP DATA Amhara region seed multiplication outputs

No Seed business Woreda Variety Planted area (Ha) # of outgrowers

1 Guna FCU Dera BH 540 302.5 799 Dera BH-661 30.4 119

2 Avallo A/Guagusa BH-660 55.0 Womberma BH-661 165.0 250

3 A/Zingini A/Guagusa BH-540 480.0

4 Yimam T. Womberma BH-661 153.0 252

5 Binyam M.

Bure Zuria BH-540 72.3 160 Bure Zuria BH-660 6.0 24 Wonberma BH-661 35.2 61 S/Achefer BH 540 12.0 94

Total 1,311.4 1,759

Oromia region seed multiplication outputs No Seed business Variety Area (hectare) # of out growers 1 Chafe Buluk FCU BH-661 407 328 2 Haregu FCU BH-661 150 133

3 Limu Inara FCU BH-661 90 93 BH-540 60 79

4 Gibe Dedesa FCU BH-546 60

5 Mek Batu FCU

BH-661 115 BH-546 59 Melkasa 290 MH-138Q 3 5 Jibati 52.5

6 Jima FCU BH-661 470 566 BH-546 60 64

7 Ano PLC BH-661 105

BH-546 5

8 Nono PLC BH-661 42

2 BH-540 127 BH-546 54

9 Wama seed PLC BH-661 82 2 BH-546 32

TOTAL 2,263.5 1,272


61

Selection and training of new SSPs in Year 4

Region Zone Woreda # Kebele

# Farmers participated

Farmers interviewed

# Farmers selected

# of SSPs trained

Amhara E Gojam Awabel 3 95 45 15 Amhara Awi Ayehu

Gugusa 5 282 45 15

Amhara E Gojam Dejen 3 251 40 15 Amhara W Gondar East Dembia 5 211 45 15 15 Amhara E Gojam Enemey 3 149 30 15 Amhara W Gondar Gonder zuria 5 395 46 15 16 Amhara W Gondar West Dembia 5 329 45 15 15 Oromia E Shoa Ada’a 3 171 36 15 14 Oromia E Shoa Gimbichu 4 209 45 15 15 SNNPR Bonga Gimbo 5 404 45 15 15 Total 43 2,496 422 150 90

Materials distributed for FAW Monitoring System

Region Unit Spodoptera Frugiperda

Trapping strips

Moth Catcher

Motorized Sprayer

PPE (full set)

Amhara No 274 69 112 5 125 Oromia No 411 103 168 5 125

Tigray No 137 34 56 5 125

SNNP No 137 34 56 5 125

MoA No 48 8 125

Total 960 240 430 28 625


62

ANNEX IV. MAIZE & CHICKPEA SEED DISTRIBUTION


63

ANNEX V. SUCCESS STORIES Dairy farmers adopting green forage technologies

Green forage is an important nutrient for the dairy cow. It is a source of energy, protein, and essential vitamins and minerals to maintain optimal body condition, increase milk production, and reproduction. However, many smallholders are discouraged to grow green forage due to limited access to seed, land, and technical know-how. “I used to feed my animals mixing hay with concentrate feed and brewing by-products. I knew my cows needed green forage but I thought it was expensive to grow and required more land than I could afford for feed” said Aberash Milkesa from the Oromia region who has 13 cows out of which five are milking.

Feed the Future Ethiopia Value Chain (VCA) has been working with farmers across the four regions for the last two years to promote green forage technology by establishing demonstration sites, organizing field days, and technical and material support. Encouraged by the results so far, currently, the activity is establishing Dairy Technology Centres (DTC) that will serve as a local extension and good practices hub for dairy technology including green forage, feed choppers, silage bags, milking machines, hay balers, and molasses tanks.

As part of this initiation, between January and February 2020, 36 DTC sites in nine woredas of the Oromia region were supported to plant green forage covering a total of 4.37 hectares of land. The sites are owned by VCA’s model farmers who are willing to use their land as a demonstration site and share experiences with at least 100 other farmers. The owners receive training and technical support on land preparation, planting, forage, and feeding management as well as material support that includes six kilograms of Alfalfa legume seeds per hectare, and 18 kinds of Desho grass splits per meter square of cultivation. The selection of the forage variety was based on the ability of farmers to grow all-year-round, nutritional content, biomass, and adaptability.

Aberash planted Desho and Alfalfa grass on 0.13 hectares. “I learned how and when to plant and harvest, and feed my animals. I have now replaced the by-product and concentrate feed with Desho grass and Alfalfa. In April and May my production has increased by 2.5 liters per day and reduced feed cost from ETB 12,000 to ETB 7,800” she said.

Muleta Amana, from Toke Kutaye woreda, Oromia region also planted Desho and Alfalfa grasses on 1.25 hectares to feed his 12 improved cows, out of which three are milking. The result, Muleta said, was encouraging for him and the 400 farmers that visited the grasses between February and March 2020. “I share my experiences telling farmers that I have increased daily milk collection from 22 to 35 liters per day once I started feeding my cows the green forage. I also plan to add five new cows to expand my farm because I believe the business is profitable if I keep growing green forage” he said. Based on a request from farmers in his village, Mulat also plans to sell Desho grass splits in the coming rainy season.

VCA is currently establishing 250 similar DTC’s across the four regions to create access to various technologies including green forage to more than 50,000 dairy producers. These farmer-led initiatives are building sustainability and helping to modernize Ethiopia’s dairy industry.

Ato Muleta Amana on his forage farm.


64

Training on recordkeeping for poultry farmers to track productivity

An organized recordkeeping system is an integral part of any successful business. However, in Ethiopia, small- and medium-scale commercial farmers consider the task complex and often use estimations to make important business decisions. For example, an initial assessment conducted by Feed the Future Ethiopia Value Chain activity (VCA) on 103 small-scale poultry farms selected for a fast track intervention showed that farmers had little or no record of their production, feed consumption, mortality, sales, cost of medicine and vaccination, or overall daily farm operations. As a result, they often failed to make informed financial and operational decisions.

In July 2019, VCA developed a detailed recordkeeping system for the 103 (47 female) poultry producers and demonstrated the system via a series of training tailored to individual farmer needs and literacy. The format allows farmers to collect information on daily production, sales, and expenses so they can evaluate performance regularly and make plans and decisions based on data.

Farmers are seeing the benefits of organized and detailed recordkeeping. Maritu Mine, a 23-year-old poultry farmer in Amhara said the training has helped her business grow. She started the farm in June 2018 with 150 egg layers and limited information on the technical and financial aspects of poultry farming. “I was struggling,” she said. In July 2019, VCA selected her as a fast track intervention beneficiary, and she received technical and material support in addition to recordkeeping training. In April 2020, her farm reached 500 egg layers and produces 400 eggs per day. “Implementing the recordkeeping system helped me to allocate the required resources and to regularly evaluate the effectiveness of the feed-in egg production. The format is detailed and helped me to know what costs how much, calculate my profit easily, invest more in areas that need improvement, and plan accordingly,” she said.

Binyam G/Medhin, 36, a commercial egg producer from Enderta, Tigray says the training helped him to perceive his business more comprehensively. “Since I started using the format to record vital information daily, I managed to take quick measures to balance my income and expenses. I found it critical to record how many months the chickens remained in their production cycle and how many months are left for culling.” Over the last year, the format has made it easier for Biniyam to follow market price fluctuations and conduct a cost-benefit analysis.

Yalemwork Adugna, a 28-year-old poultry farmer from Robit, Amhara says she learned the secret of recordkeeping is consistency. “I used to do it when I could and I never went into details. I considered recordkeeping time-consuming and less important. But now I know that without records I can't tell the exact number of eggs a chicken laid, how much feed they consumed, and other vital information necessary for evaluating the productivity and profitability of my business,’’ she said.

Encouraged by the initial result, VCA is rolling out the program across all of the 14,694 poultry farmers supported by the activity and collaborating with the Ethiopian Poultry Producers and Processors Association to share recordkeeping experiences across the country. The activity also distributed poultry and feed manuals including the recordkeeping formats to agricultural bureaus to all target woredas.

VCA poultry technician providing technical support on record keeping and farm management.


65

Local hybrid maize variety high in demand among farmers

In 2019, with support from Feed the Future Ethiopia Value Chain Activity (VCA), the Advanced Maize Seed Adoption Program (AMSAP) continued the promotion and commercialization of improved local hybrid maize varieties known as BHQP 545, BH546, and BH547, on 2,610 demonstration sites on farmer’s plot in 22 woredas of Amhara, Oromia, Tigray, and SNNPR.

Since the beginning of the partnership with VCA, 43,815 (9,432 female) maize farmers participated in the regional, woreda, and village level field days organized to showcase the crop stand, physical performance, and yield potential of the new hybrid varieties. AMSAP also collaborated with the Ministry of Agriculture (MoA), Ethiopian Institute of Agricultural Researches (EIAR), CIMMYT, and seed enterprises, to provide capacity building training, and technical assistance on hybrid maize seed, agricultural inputs, and create access to improved technologies, and marketing system.

Data collected by VCA in March 2020 from 46 random sites showed that among the three varieties promoted and marketed BH-546 was farmer’s favorite with a better yield that is some 65 percent above the national average. From one hectare of land, on average, farmers collected 68.03 quintals in SNNP, 64.8 quintals in Oromia, 59.89 quintals in Amhara, and 47.7 quintals in Tigray regions.

Farmers commented that the BH-546 variety is drought tolerant with a very good green mass that is preferred for livestock feed. The acceptance of the variety by farmers around the country could also be seen from the national demand for seed sales in the main season of 2020, which were reported to be greater than 3,300 MT with a value of over $3.4 million. This seed quantity covers 132,000 hectares, reaching more than half a million farm households.

Haji Abdela Kemal, a smallholder seed multiplier from SNNPR says the variety is trusted by farmers because it is highly productive “I have never heard of a farmer complaining about this variety. I have produced 290 quintals of seed last season and all were sold with ETB 3,500 per quintal” said Ato Haji Abdela. According to Haji, if combined with good agricultural practices including spacing, weeding, and favorable conditions for the seed, all his customer farmers agree that high productivity for BH-546 is guaranteed.

“We collected double of what we previously did from BH 540, a variety which is widely used in our area. From 12 kilograms of BH 546 seed I harvested 24 quintals of maize,” said Shambel Tolossa, a farmer in West Shewa, Nano woreda. Shambel’s plot was one of the BH 546 variety demonstration sites. “We are happy with the result and adopted BH 546. We now are expecting to collect more than 40 quintals from 0.5 hectares of land” he said.

Ato Girma Mideksa Jiru, from West Shewa, Nanno Kondala also says he experienced a big difference in yield between the BH 546 and Limu variety, which he planted in previous years. “The difference is as big as 15-16 quintals in yield. From 0.25 hectares of BH 546, I collected 28 quintals and made an average of ETB 940 per quintal. For this season, I bought 12.5 kilograms of BH456 seed with ETB 720, and covered 4 hectares,” said Ato Girma, “the variety is in high demand; we are so pleased with its productivity.” He added.

Following the strong demand, VCA will support four public and 13 private seed enterprises to produce more than 8,000 metric tons of the BH-546 hybrid maize variety, which are estimated to meet 20 percent of the national hybrid seed demand in the country.

Field day to demonstrate local hybrid maize variety in Laelay


66

Gardening for dietary diversity

The dietary diversity survey conducted by Feed the Future Ethiopia Value Chain Activity (VCA) in 2019 showed that nutrition-focused interventions by the activity such as training, practical cooking demonstration sessions, and mobilization of religious leaders are contributing to improvements in dietary diversity practices.

To encourage the consumption of Vitamin A-rich vegetables and to create sustainable access, in 2020 VCA started working with 1,300 selected women farmers (300 each in Amhara, Tigray, and SNNPR, and 400 in Oromia) by initiating home gardening practical training on the cultivation of vegetables as well as nutrition education and cooking demonstrations. The women were selected based on their interest to engage in gardening as well as having the space to do so. The training introduced Vitamin A and mineral nutrient-enriched vegetable varieties and seedlings including Swiss chard, cabbage, kale, carrot, and beetroot, as well as providing basic agricultural equipment such as a hoe, spade, and water cane.

Zaytuna Jemal, a coffee grower and mother of six from Limu Seka, Jimma, said the training was an eye-opener. Though she has a backyard, before the training she had never cultivated vegetables of any type and was only focused on her coffee plants. “The training was practical and can easily be put into practice. It taught me not only the different varieties of vegetables and how to cultivate them in my garden but also how to prepare and feed nutrient-enriched foods to my children,” she said.

Zeytuna is now growing tomato, local cabbage, and Swiss chard, and says her six children are enjoying the new taste and variety. “They loved it. Therefore, I will continue to expand my garden vegetables,” she said.

Tsedey Nega, a 20-year-old livestock farmer from Tigray, also decided to the garden after receiving training and material support from VCA, and she’s now growing Swiss chard, beetroot, and cabbage to feed her family. “Vegetable consumption is not common in my community. We assume it’s a luxury and a habit of city people. We only consume vegetables if we have the money to buy them from the market. We often don’t have the money, and the market itself is 10 kilometers from our village. However, the training taught me I can easily grow healthy and nutritious food for my family.’’

VCA provides regular training, cooking demonstrations, and material support to the selected women, and facilitates an experience sharing opportunities for communities to adopt the best practices. From January to April 2020 more than 70 training sessions and cooking demonstrations were conducted in the four regions for the 1300 women farmers. The home gardening program will continue expanding across the farming communities throughout 2020. This will include supporting start-up vegetable seedling businesses to make planting material convenient and readily available and improve the efficiency of seed usage.

Tsedey Nega from Tigray region is growing Swiss chard, beetroot, and cabbage to feed her family


67

Supporting growers to produce specialty coffee

Feed the Future Ethiopia Value Chain Activity (VCA) is providing resources and expertise, to build the processing capacity of specialty coffee producers. Through a cost-sharing scheme, the activity is investing $ 444,224 through a Technology Fund to establish 32 specialty wet (washed) and 18 dry (sundried or natural) coffee processing sites at selected farms in Oromia, Jimma Zone, SNNPR-Kaffa and Bench Sheko Zones, and Amhara Region. The farms are owned by commercial and lead farms, and cooperative unions. The selection of the farms was conducted by a verification committee comprised of representatives from VCA, regional Coffee and Tea Authority officials, and unions. Volumes of coffee per hectare, the capacity to cost- share, the ability to create jobs, environmental and beneficiary safety, and gender and youth inclusiveness are among the main selection criteria. The technical staff from VCA, Boot Coffee, and COQUA evaluated various wet processing equipment and drying materials options for quality, cost, water, and energy consumption, environmental risk, ease of operation before the procurement of the equipment. VCA coordinates with farmer groups, to ensure environmental compliance set out in the governing Initial Environmental Examination (IEE), and mitigation measures from the Environmental Mitigation & Monitoring Plan (EMMP) are employed. The wet processing sites are equipped with micro-mill washing and pulping machinery, with the capacity to process a minimum of 75,000 kilograms of red cherries per season. The dry processing equipment covers an average area of 1,400 square meters, with a capacity to dry 50,000 kilograms of raw cherries per season. VCA also provides follow up with technical support and training for improved post-harvest handling and processing techniques. In 2019 and early 2020, VCA distributed materials and supported the installation of 19 wet and 14 dry processing equipment in Jimma zone (15 wet and five dry), Bench Sheko Zone (three wet and five dry), and in Amhara (one dry). In Aril 2020, the activity installed an additional 10 processing sites, finalizing 43 out of the 50 initially planned. Once functional the 10 new processing sites are expected to process 90 percent specialty coffee and benefit 1784 farmers (364 female) farmers, and create permanent and contract employment for up to 500 people. In addition, VCA supported Jimma and Bonga Agricultural Research Centres with drying materials, and Jimma University with wet processing equipment. The remaining sites are in process of installation in preparation for the new harvest season. “Each year I lose 10-15 percent of coffee due to wastage and decay. I didn’t have the appropriate and enough drying beds to accommodate the coffee and I was forced to leave some of it on the trees to dry,” said Jafar Mohamed Nure in Jimma Zone, Oromia, one of the recipients of the drying materials. “I believe the support will improve my productivity and quality. I hope to sell my coffee at the specialty market next season,” Jafar added. “VCA’S technical and material support helped us to increase the red cherry we collect annually from 10,800 kilograms in 2018 to 60,000 last year. Our coffee was also graded low. The support encouraged all of our 350 members to actively produce and supply red cherry and helped our union to process to specialty standards, and receive a premium price,” says Ato Petros Chelfa, Chairperson for Yemiserach Farmer’s Cooperative Union, one of the recipients of wet mill processing equipment in SNNPR. The data up to December 2019 shows that 888,135 kilograms of red cherry was processed through VCA- supported processing units. As a result, 1,218 coffee out-growers has received over $ 760,000 through sales of red cherries to commercial farms. In addition, 1,447 women and youth are hired as permanent and contract employees.

Workers offload washing materials to build washing station in Mizan, SNNPR.


68

ANNEX VI. COVID-19 IMPACT INFOGRAPHICS


69


70


71


72


73

ANNEX VII. NON-EXPENDABLE PROPERTY

(1) Non-expendable property and all mobile IT equipment

(2) Government-furnished property listed in this contract as nonexpendable or accountable, including all mobile IT equipment.

(3) Explain if transactions were not processed through or otherwise authorized by USAID.

PROPERTY INVENTORY VERIFICATIONS

I attest that (1) physical inventories of government property are taken not less frequently than annually; (2) the accountability records maintained for government property in our possession are in agreement with such inventories; and (3) the total of the detailed accountability records maintained agrees with the property value shown opposite line C above, and the estimated average age of each category of property is as cited opposite line D above.

Authorized Signature Printed Name Date

ANNUAL REPORT OF GOVERNMENT PROPERTY IN CONTRACTOR’S CUSTODY Fintrac, Inc.

As of September 30, 2020

Computer, Other Office Equipment, Software Vehicles Motorcycles

Agronomist Kits/Field Technician

Materials

Office Furnishings & make ready

EF001 EF002 EF003 EF004 EF005 A. Value of

Property as of last report

225,778 780,810 - 21,160 111,892

1. Acquisitions (add): 19,468 - - - 3,053

a. Purchased by contractor (1) 19,468 3,053

b. Transferred from USAID (2)

c. Transferred from others without reimbursement (3)

2. Disposals (deduct): 564 57,900

B. Value of property as of reporting date.

244,682 722,910 21,160 114,945

C. Estimated average age of contractor held property (in years)

2.62 2.64 2.14 2.44


74

ANNEX VIII. BUDGET See separate attachment for FY 2020 financial summary.

Feed the Future Ethiopia Value Chain Activity - pdf.usaid.gov

Documents