S RepoRt #4

Semiannual RepoRt #4

octobeR 1, 2015 - maRch 31, 2016

table of contentS

Executive Summary

Introduction

Component One: Technology Commercialization

Component Two: Mission Partnerships

Component Three: Acceleration Services

Component Four: Knowledge Exchange

Program Impact

Challenges and Solutions

Annex I: Workplan

Annex I: Overview of Partnerships

Annex III: Budget and Expenditures

Annex V: Supplemental Documents

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28

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31

Feed the Future Partnering for Innovation Semiannual Report 2016

Page 2

400,627 smallholder farmers are currently using new technologies on more than 25,000 hectares in 14 countries, and at least 450,000 farmers will be using new technologies by 2017.

$32.4 million in funding has been committed to date by Partnering for Innovation with more than $43.4 million leveraged from primarily private sector partners.

69 new technologies or management practices for smallholder farmers have been funded.

76 partnerships have been formed with 31 primary Partnering for Innovation partners and 45 subpartners.

$6 million in new agricultural technologies and services have been sold to smallholder farmers.

1,500 AgTechXChange users are engaging in information sharing around new technologies, scaling for smallholder access and affordability, and investment options.

Partnering for Innovation continues to be strongly positioned in external media. It launched a blog series with Agrilinks that featured 12 of its technologies in the first three months of 2016; seven international newspapers, journals, and other publications featured articles about the program or its partners in the past six months; and social media continues to grow, with 1,000 Twitter followers and membership in the LinkedIn group reaching 835.

As follow up to last summer’s AgAccelerator Lab, the program began targeted business acceleration services by providing partners with a strategic planning guide and consultations with a business expert to help build their five-year business plans. In addition, marketing experts worked with companies in Mozambique on seed marketing, distribution, and sales strategies and in Malawi on branding and marketing, as well as conducting a survey for Surehatch in Kenya, and a cross-partner study on drip irrigation.

400,627 SmallholdeR faRmeRS aRe now

uSing feed the futuRe paRtneRing foR

innovation-funded technologieS in 14

countRieS.

executive SummaRy

“ I just love this program...the activities show more demand-driven development than the country has seen in 53 years.

Bill Brands, USAID Mission director, Guatemala

Page 3


intRoductionFeed the Future Partnering for Innovation is a USAID-funded program that helps the private sector to scale and market agricultural technologies for smallholder farmers through investing in technology commercialization and knowledge exchange. The program also facilitates partnerships between USAID Missions and the private sector and provides business acceleration tools and services. The program budget is $66.9 million, of which $52.5 million is allocated for program investment in technology commercialization and Mission partnerships.

Program goals

Partnering for Innovation’s goal is to improve the incomes of smallholder farmers, especially women, in developing markets. Projected outcomes include:

• Making proven agricultural technologies commercially accessible to smallholder farmers.

• Fostering Mission-level partnerships to leverage private sector investment in improved food security.

• Identifying, evaluating, and profiling effective private sector engagement models for USAID and other practitioners to use.

• Capturing and disseminating best practices in technology development, adoption, and distribution.

This report summarizes activities and accomplishments for Year 3, reporting period FY2016 (October 1, 2015 to March 31, 2016).

Introduction


Page 4

In Cambodia, WorldFish is improvingnutrition and income for landless households throughits small-scale fish ponds.

Moana is bringing improved, disease-free black tiger shrimp to Bangladesh, improving yields and profits for small shrimp farmers.

Driptech is reaching farmers in India and East Africa with its low-cost, high-quality Instakit that can be installed by farmers in less than three hours.

African Agricultural Technology Foundationand seven seed companies are scaling up commercial availability of StrigAway seed to combat striga, a parasitic weed, in Kenya, Tanzania, and Uganda.

In Zambia, AGCO is selling metal grain storage systems to village-level grain traders, and Toro is selling smallholder drip irrigation kits through MRI AGRO.

International Charitable Fund is improving dairy productquality and market access for smallholders in Ukraine.

EcoPlastics in Rwanda and Bell Industries in Kenya are selling Purdue Improved Crop Storage bags, helping farmers ensure food security.

In Senegal, CTI’s pearl millet thresher and grinder are hand-operated tools that reduce postharvest loss, improve grain quality, and are more efficient than traditional mortar and pestle.

In Mozambique and Malawi, Opportunity International is offering banking and financialservices for smallholders.

Zamorano University in Honduras is increasing production and sales of beneficial nematodes to smallholder farmers as chemical-free pest control.

In Guatemala, MercyCorps and Syngenta Foundation are introducing Farmforce, softwarethat provides full source traceability for exporting produce.

January 2016

Snapshot of Feed the Future Partnering for Innovation Global Activities

In Mozambique, EMCL is trainingwomen to run retail hubs for farmersto store produce, purchase inputs, and rent equipment.

Surehatch is commercializing small-scale automated egg incubators for smallholders in Kenya who will be able to start their own poultry production businesses.

Introduction

Page 5


Due diligence and negotiations culminated in signed agreements with four new partners. These partners will: introduce a legume inoculant in Malawi; expand mechanized reaping services in Bangladesh; provide mobile loan services in Kenya; and offer low-cost cold storage solutions in Honduras.

Agro-Input Suppliers Ltd. is the only Malawi-based company producing nitrogen-fixing soy inoculant. Partnering for Innovation support will allow Agro-Input Suppliers to generate demand for the inoculant, NITROFIX, aiming to sell the product to 80,000 farmers.

The Metal (Pvt.) Ltd. in Bangladesh is expanding into the Jhenaidah District, a Feed the Future zone of influence, to commercialize reapers primarily for wheat and rice harvest. The reaper can harvest an acre of land with one laborer using seven hours less labor than current practice. The Metal will sell reapers to local service providers who will lease services to a targeted 3,750 smallholders.

Small agricultural loans can allow producers to invest in inputs that greatly improve productivity. Kenya-based microfinance institution Musoni, with Grameen Foundation support, hopes that the Kilimo Booster loan software will offer traditionally underserved farmers financial products. It is expected that 3,500 farmers will now have access to customized loans during the pilot.

Store It Cold opened its San Pedro Sula, Honduras-based office, the first international office aimed at commercializing the CoolBot to smallholder markets. Local staff have begun developing promotional materials and initiating conversations with potential demonstration unit partners.

component one: technology commeRcialization

Partnering for Innovation has 19 technology commercialization partnerships that are in process or completed. A partnership to commercialize legume varieties in Zambia, selected during the fourth round of competition is pending USAID approval. Through these investments, the program is commercializing technologies in 12 countries for a total of $19.3 million in funding, including $8.9 million in partner leverage and another estimated $400,000 in negotiation. During the reporting period, Partnering for Innovation signed four new partnerships, managed eight ongoing partnerships, graduated three partners, and continued targeted support with seven graduated partners. For details on all partners, see Annex II.

Affordable Cold Storage in Honduras

With postharvest losses nearing 50 percent for horticulture crops, cold storage technology is crucial for maintaining product lifespan and reducing rejection rates that constrain farmer income. The CoolBot offers a low-cost option for produce buyers to build a cold storage room transforming a well-insulated room into a cold storage unit by connecting the CoolBot to a standard window air conditioner. The do-it-yourself cold room will cost 10 times less than the costs of refrigeration units on the market, making cold storage much more accessible and reducing loss rates.


New PartNershiPs


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Smallholder Farmer Addresses Seed Companies

Hadija Namumbya of Bugiri district in Uganda spoke to StrigAway stakeholders about her positive results with StrigAway. She asked the seed companies to make more of the imazapyr- resistant maize seed available to help farmers “fight hunger, pay school fees, and get out of poverty” by increasing crop yields and income on farmland previously infested with this invasive weed.

Syngenta Foundation for Sustainable Agriculture and Mercy Corps continue to expand the availability of the Farmforce traceablity software in Guatemala. During the reporting period, the partners completed a cost-benefit analysis of the showcase implementation partner, Fair Fruit, an exporter of snow peas to the United States and Europe. The findings of the cost-benefit analysis indicated a reduction in pesticide residue detection by 53 percent, a 46 percent increase in traceable produce, and a reduction of rejection rates from 10 percent to 2 percent as a result of using the software. To date, Farmforce is being used by seven exporters allowing them to trace products to 3,480 individual smallholders.

African Agricultural Technology Foundation (AATF) and its seven seed company partners have sold almost 300 metric tons of StrigAway, an imazapyr- resistant maize seed, to smallholder farmers in Kenya, Uganda, and Tanzania. In December, AATF and Partnering for Innovation convened 38 key players who are involved in StrigAway production, training, and sales in Kenya, Tanzania, and Uganda to prepare for the final 15 months of implementation. AATF led panel discussions with experts from the International Maize and Wheat Improvement Center and BASF, as well as seed companies and farmers.

Orders for day-old chicks from EthioChicken agents are surging, with a five week backlog of orders from agents. To date, EthioChicken has trained more than 260 agents, a quarter women, in managing day-old chick feeding, vaccinating chickens, and marketing to smallholders. Agents on average have the potential to earn at least $800 per year in sales commissions. Sales of improved poultry totals $2.2 million to date, benefitting 145,582 smallholders, most of them women.

Zamorano University began working with the Instituto Hondureño del Café (IHCAFE) to demonstrate the effectiveness of beneficial nematodes in combatting coffee berry borer, one of the crop’s most harmful pests. IHCAFE has never used beneficial nematodes before, which have the potential to benefit the national coffee association’s more than 100,000 smallholder coffee producers.

The partnership with Moana Technologies to sell disease-free shrimp through MKA Hatchery ended during this reporting period. MKA Hatchery sold 53.5 million disease-free post-larvae shrimp to more than 1,000 smallholders during the two-year partnership and is on track to produce 500 million more post-larvae shrimp in 2016 alone.

Farmers that purchased the Surehatch incubator in Kenya report average income increases of 15 percent since adopting the new technology. The program conducted a farmer impact study which found that farmers using the Surehatch incubators are also investing in improved chicken varieties, which are more profitable.


oNgoiNg PartNer achievemeNts

graduated PartNers

Page 7


component two: miSSion paRtneRShipS

Partnering for Innovation works with USAID Missions to address pressing agricultural challenges by designing partnership solicitations, developing the solicitation process, providing analysis and other technical assistance, and managing public private partnerships through performance-based grants based on business metrics. Through this process, Partnering for Innovation provides USAID Missions with a more efficient way to engage the private sector.

The program is currently managing 12 partnerships in four countries with $21.6 million of Mission buy-in and $34.5 million in total leverage from partners. Partnerships in these countries will provide new agricultural technologies and improved market access to nearly 107,000 smallholder farmers. The program is also establishing partnerships with two new Missions, Nigeria and Benin, as well as second round buy-ins with Guatemala and Mozambique for up to twelve new partnerships.

The total Guatemala portfolio is valued at $3.4 million of USAID funding with an additional $2.7 million in leveraged funds. Projects will run from June 2015 through July 2018. Partnering for Innovation’s first solicitation focused on diversifying products and markets to improve horticulture crop productivity.

Popoyán and subpartners, MICSA and Universidad del Valle, are scaling -up production of beneficial insects and fungi with the potential to put more than 1,000 hectares in the Western Highlands under organic pest management. Popoyán is already selling some of these products and, to date, has trained almost 1,000 farmers, about 20 percent women – with more than 60 percent between the ages of 16 and 24 – at more than 80 demonstration plots.

Partnering for Innovation’s second Guatemala solicitation focused on increasing economic opportunities for youth in agribusiness. The program finalized one partnership and another is under negotiation.

Mercy Corps, together with partners Fair Fruit and Rana Labs, will organize 51 youth savings and loan groups, establish 15 demonstration plots to promote adoption of productivity-boosting technologies, organize youth dialogue exchanges on agronomic and social topics, and train youth to use multimedia tools to promote self-savings groups and produce videos for extension. This agreement was just getting underway at the end of this reporting period.


usaid/guatemala


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Three private sector-led partnerships are valued at more than $6 million with 50 percent leveraged from the private sector. These projects operate from January 2015 through July 2017.

Opportunity International Bank Malawi (OBM) with Opportunity International and Catholic Relief Services is targeting groundnut, soybean, and orange-fleshed sweet potato farmers with banking services including loans, savings accounts, and mobile money services. To date, OBM has made 482 agriculture loans, almost half to women. OBM and its partners have also trained more than 3,000 farmers, two-thirds women, in good agricultural practices and financial literacy.

Universal Industries has opened its orange-fleshed sweet potato processing plant and a new greenhouse, trained 110 smallholder farmers in good agricultural practices for sweet potato production, and launched one new commercial product called Beta Crisps on retailers’ shelves.

Rab Processors Ltd. is working with the Agriculture Commodity Exchange to strengthen the soybean, groundnut, maize, and pigeon pea value chains by establishing three rural marketing and storage facilities and a warehouse receipts program. To date, more than 500 farmers (47 percent women) have been trained in warehouse receipts.

Creating a Market for Orange-fleshed Sweet Potatoes in Malawi

In Malawi, roughly 60 percent of children under the age of five are vitamin A-deficient. Orange-fleshed sweet potato (OFSP) is one important food that can address this deficiency, but many sweet potatoes currently go unsold and unconsumed. Universal Industries, a leading snack and beverage producer in Malawi, is partnering with the International Potato Center and Partnering for Innovation to develop the market for OFSP in Malawi. Sweet potato farmers benefit from higher prices as well as the stable income that comes from selling in large quantities. Local sourcing also means that Universal can make its products using sweet potato flour rather than the wheat flour normally imported for their products, increasing sustainability and nutrition and reducing import costs.


usaid/malawi

Page 9



Implementation is underway on four projects valued at almost $30 million, with 60 percent of the total funding provided as applicant leverage. Projects run from November 2014 to July 2017.

Greater numbers of women than projected are accessing new financial tools and agricultural trainings through the partnership with Opportunity International and Banco Oportunidade de Moçambique (BOM). For example, BOM opened 5,000 savings accounts for farmers, one-third of whom are women, exceeding its milestone target of 1,500. Of 1,400 smallholder farmers who have received training in good agricultural practices, one-quarter are women. Finally, of 750 business loans to smallholder farmers, one-third of the borrowers are women.

In the heart of rural Mozambique, some of the poorest smallholders are receiving training from iDE and purchasing high-quality seeds and other inputs from private sector partners including farm business advisors trained by iDE. To date, 1,300 smallholders have been trained in good agricultural practices and have also purchased input kits for high-quality soybeans, groundnuts, cow peas, pigeon peas, sesame, and common beans.

NCBA CLUSA, Oruwera, and Phoenix Seeds continue to meet their goals to improve farmers’ access to high-quality inputs, extension services, and training by developing innovative distribution networks. In order to improve sales, the seed companies changed their outreach to include traveling to local markets on a weekly basis, as well as attending farmer fairs. As a result, 30 metric tons of pigeon pea, sugar bean, and soybean seed have already been sold to 2,083 smallholder farmers by Phoenix Seeds.

Export Marketing Company Limited has constructed eight retail hubs that have already provided market access and storage options for almost 6,000 smallholder farmers. Smallholders will also benefit from access to inputs, mechanization services, and 90 days of free crop storage by the end of this year when Export Trading Group’s 23 farmer hubs are operational.

usaid/mozambique

Innovative Ways of Bringing Certified Seed to Smallholders in Mozambique

Implemented by NCBA CLUSA and supported by Partnering for Innovation, the Smallholder Effective Extension-Driven Success (SEEDS) project works in partnership with Oruwera Seed Company and Phoenix Seeds to increase the availability of certified, improved seed by mounting stalls at community markets to highlight their seed products. Publicity material, music, radio broadcasts, demonstrations, and competitions create an energetic atmosphere. Smallholders who previously had to travel more than 80 kilometers to a seed store can now buy quality seeds locally. Oruwera and Phoenix also identify entrepreneurial farmers to work as company agents, training them in agricultural and business skills so that they can promote and sell the companies’ seeds to their neighbors.


Page 10

USAID/Benin and Partnering for Innovation are assessing partnerships to improve incomes and productivity for smallholder farmers in the cashew and aquaculture industries.

USAID/Guatemala and Partnering for Innovation are working on an additional partnership that will increase economic opportunities for youth in agribusiness, especially horticulture crops, through improved technology and agricultural practices.

USAID/Nigeria’s solicitation with Partnering for Innovation focused on increasing smallholders’ access to agricultural inputs and technology; training in improved agronomic and business practices; expanding markets for feed milling and mixing operations; and scale-up of outgrower or aggregation schemes in the cassava, rice, maize, sorghum, soybean, cocoa, cashew, shea, and aquaculture value chains.

USAID/Mozambique’s second solicitation with Partnering for Innovation aims to increase access to agricultural inputs, technology, mechanization, irrigation, financial services, and improved agronomic and management practices in the oilseeds and pulses value chains.

The solicitation requested applications for public private partnerships that support small- and medium-size enterprises across the agricultural value chain. The four selected projects’ total value is $14,146,253, consisting of $4,095,413 in USAID funding and $10,050,840 in leverage. The projects began in mid-2015 and will last for two years.

In preparation for the production of better quality milk in Ukraine, International Charitable Fund-Community Wellbeing upgraded equipment at 29 family farms and installed 17 milk-cooling tanks for smallholder use. Already, more than 150 smallholder farmers have supplied 56,000 liters of high-quality milk for Danone and other large dairy processors. In addition, 187 farmers, two-thirds of whom are women, have been trained in best practices for milk quality, hygiene, feeding, and environmentally sound farm management.

To improve potato quality, Agrico has trained farmers from more than 200 small and medium size enterprises in proper potato planting, cultivation, and management.

Finally, to improve overall agricultural productivity, Agrobonus activated its mobile training laboratories and held eight fertilization and field management workshops for more than 400 farmers.


usaid/ukraiNe

PartNershiPs iN NegotiatioN

“ To be honest, I am quite impressed about how well designed the milestones are. They are private sector friendly and will incentivize us to maximize smallholder impact.

Rui Brandao, Mozambique applicant

“ We are in the beginning stage of [the partnership], but it already helps me to plan my business, structure it, and think about the future: turning crisis into opportunities. The marketing plan helped our organization to get our act together; I got everyone in our organization involved into various stages of the development of the marketing plan, and when making a two-year work plan, we realized that we need more people to get where we wanted to be.

In spite of the vulnerable market situation and slow economy in Ukraine, Partnering for Innovation helps me in developing my company through directing and monitoring our marketing, sales, and training efforts.

Nick Gordiichuk, owner, Agrico

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The smallholder market is poorly understood and the market potential is difficult to quantify due to the lack of good studies and data on product preferences and buying power. Companies need to carefully evaluate the market to determine if there is a viable business opportunity, quantify it, and then segment the market accordingly. Without an understanding of the customer base, a company faces the risk of pricing a product too high, not offering an appropriate product to meet customers’ needs, not adequately articulating the value proposition, and underestimating logistical challenges for bringing a good or service to the last mile.

To help partners overcome these challenges, the program provided the following support services:

• Seed marketing expert Fungayi Simbi worked with Mozambican seed companies Oruwera, Phoenix Seed, and Lusosem to develop seed marketing, distribution, and sales strategies for each company. These strategies will help them understand and address local market issues including consumer demand, smallholder opportunities, and distribution challenges associated with providing certified seeds to smallholder farmers in rural areas.

• Jeffrey Spear, a branding and marketing expert, worked with Universal Industries in Malawi to conduct a regional marketing assessment and develop a sales strategy for expanding the market for their processed orange-flesh sweet potato products. This strategy will help Universal competitively position its new products as well as address local raw material and infrastructure constraints.

• Spear also worked with Agro Input Suppliers Ltd. to evaluate and provide feedback on the company’s marketing and distribution plan.

• To increase Surehatch’s understanding of its target market in Kenya, Fintrac’s Food Analytics department conducted a study to help the company better segment their market and target smallholder customers. Fintrac collected customer demographics information and surveyed customers of the Surehatch egg incubator to document feedback on the impact of the incubator on farmers’ poultry production and income. Surehatch will use this information to develop its expansion plans in Kenya and other countries in the region.

component thRee: acceleRation SeRviceS

In response to partner requests, Partnering for Innovation provides business acceleration services to help them scale their agricultural technologies in developing markets. The program provides technical assistance and training through case studies and workshops, one-on-one mentoring and coaching, facilitated participation in investor events, marketplace presentations, trade shows, and technology fairs.


marketiNg


Page 12

Annual planning is an integral part of good management practices and is especially important for companies that are introducing new products into these challenging marketplaces. To support this effort, Partnering for Innovation contracted Roger Bird, a business and banking consultant with more than 20 years of experience in emerging economies and agriculture, to develop a practical guide for strategic business planning. This guide and a structured engagement process with coaching by Bird, helps partners think through risks and opportunities and establish a clear plan for staffing, expenditures, and anticipated revenues over a three year planning period. During this reporting period, Bird worked with partners MKA Hatchery and EthioChicken to develop their strategic plans. He will work with four additional partners by September. He is also serving as a key faculty member for the program’s June acceleration workshop in Washington, DC.

“ We’re grateful to have such a realistic approach to strategic planning. It’s made the process so much easier.

Nizam Ahmad, communications manager, MKA Hatchery


Following recommendations from its midterm evaluation, Partnering for Innovation hired a gender consultant to conduct a gender program review to ensure that program activities are prioritizing positive outcomes for women. It also developed a strategy for incorporating gender into program activities and tracking those activities’ impact. Partnering for Innovation’s goal is to ensure that women have access to its partners’ technologies and services by:

• Demonstrating the profitability of targeting women smallholders as customers through case studies, value chain analyses, and marketing tools.

• Showing that supporting women employees in executive, managerial, processing, and manufacturing positions through company policies and services leads to better business results.

• Improving internal systems to support, document, and promote the program’s impact on women.

The program updated its four case studies (PICS, Toro, CTI, and PortaScience) to focus specifically on the business challenges faced in commercializing technologies into new markets. The program will complete four additional case studies this summer. Finally, a cross-partner study on the commercial challenges in getting drip irrigation packages to smallholder farmers, as well as market research on this market, is in draft form and a second cross-partner study is in the scoping stage.

strategic PlaNNiNg

geNder

case studies

Page 13


component fouR: Knowledge exchange

Partnering for Innovation’s Knowledge Exchange is a resource for learning, analysis, dialogue, and interaction on commercializing agricultural technologies for smallholder farmers.

AgTechXChange users have topped 1,500 in the past six months, an increase of 25 percent. Three-quarters are from the private sector and work predominantly in sub-Saharan Africa, Southeast Asia, and Central America. The AgTechXChange was viewed almost 50,000 times in the last six months. Popular posts included “New Storage Options Reduce Postharvest Losses,” which the ADM Institute for the Prevention of Postharvest Loss included in its newsletter and which received 1,700 views. In addition, the Technologies and Funding spaces remain the most visited sections of the AgTechXChange and plans are underway to streamline the structure of the site.

Component Four: Knowledge Exchange

Partnering for Innovation and its partners participate in industry events to raise partners’ profiles with potential investors, highlight innovative technologies, and make important new business connections. This period’s events included five partner presentations:

• CTI was a cosponsor and speaker at the First International Congress on Postharvest Loss Prevention in Rome, Italy in October 2015. Executive Director Alexandra Spieldoch presented a case study on Reducing Grain Losses through the Introduction of Mechanized Pearl Millet Threshing Tools in Senegal. As a result, CTI achieved visibility and recognition, and the Daily Nation featured CTI’s work in Senegal. In addition, CTI is now exploring a partnership with the World Food Programme to support rural women in food processing.

• The Global Forum for Innovations in Agriculture (GFIA) Africa Conference in December 2015 featured Surehatch, AATF, and iDE International with The Toro Company, connecting them with potential investors and partners.

• The GFIA in Abu Dhabi in March 2016 featured MKA Hatchery and its introduction of disease-free shrimp to Bangladesh. As a result, MKA is exploring sales of its disease-free shrimp to new markets in the Middle East.

Other industry events featuring Partnering for Innovation included:

agtechXchaNge

eXterNal eveNts

AgTechXChange Connects Seed Company with New Drying Technology

Jordan Dey of GrainPro posted a blog on the AgTechXChange about his company’s new Solar Bubble Dryer, which uses solar energy to speed drying time and improve crop quality for small farmers. Kevin Gifford, owner of Phoenix Seeds and a participant in the 2016 Partnering for Innovation AgAccelerator Lab, requested an introduction to GrainPro, saying, “Sadly one of the biggest problems we face is not being able to dry certain crops effectively and without affecting their germination.” Dey introduced him to GrainPro’s Mozambique-based Africa Continent Manager, Daniel Tesfaye, and a conversation about collaborating is now underway.


Page 14Component Four: Knowledge Exchange

Partnering for Innovation’s Tech Talk series continued with a webinar featuring Spencer Morley of Farmforce on using the traceability software to improve outgrower schemes. Forty people participated in the live webinar and another 60 have accessed the audio recording.

Feed the Future published articles in its monthly newsletter on the MKA Hatchery/Moana Technologies partnership and Zamorano’s beneficial nematodes.

Partnering for Innovation launched a blog series with Agrilinks, featuring 13 technologies in the first 90 days of 2016, and discussions are under way for a joint podcast this summer. A complete list of blogs is available on both Agrilinks and the AgTechXChange.

Seven international newspapers, journals, and other publications featured articles about the program or its partners.

Social media continues to grow, with Twitter followers hitting 1,000 and membership in the LinkedIn group reaching 830.

More than a quarter of 3,000 recipients opened the program’s e-newsletter each month, featuring updates on partners and their technologies.

Partnering for Innovation published three blogs, which were viewed by 550 readers, on topics such as attracting investor funding, succeeding in the smallholder market, and improving business outcomes by hiring women.

In February, the program hosted the AgCluster’s (Partnering for Innovation, Securing Water for Food, and Powering Agriculture) quarterly meeting. The group began planning for the June Ag Innovation Investment Summit, including hiring an event planner and determining roles and responsibilities.

The program participated in USAID LEARN’s Moving the Needle conference in November, which launched the Collaboration Learning and Adapting Matrix as well as the USAID TOPS/FSN workshop on Developing a Program Knowledge Management Strategy in March. Team members gained a deeper understanding of how to capture and share knowledge and best practices.

Partnering for Innovation joined a panel discussion to share its experience with successes and hindrances in commercializing technologies for smallholders at the USAID TOPS/FSN Conference in January called Strengthening Connections: Inquiry, Innovation, and Implementation.

tech talks

articles aNd media coverage

collaboratioN

• A presentation on models for private sector engagement, including Partnering for Innovation’s approach to structuring milestone-based agreements in Malawi and Mozambique at Opportunity International’s Board of Governors annual meeting in Washington, DC in October 2015.

• A discussion about how public private partnerships are increasing the uptake of agricultural technologies in developing countries at Georgetown University’s McCourt Policy School Conference (R)Evolution of the Global Economy in February 2016. This resulted in an article in the Georgetown Journal of International Affairs and new connections with the NanoBusiness Commercialization Association and Water Innovations Alliance.

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pRogRam impactListed below is the progress made toward program indicators over the past six months of implementation. Please note that the impact numbers below are listed by year.

Component #Partnerships

ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016

AchievedFY 2017 Target

FY 2018 Target

LOP Target

Achieved To Date

Remaining

1. Technology Commercialization * Component 1 6 7 3 5 4 0 25 21 4

2. Partnership Development ** Component 2 0 0 12 1 0 0 29 13 16

Mozambique 0 0 4 0 0 0 7 4 3

Malawi 0 0 3 0 0 0 3 3 0

Guatemala 0 0 1 1 0 0 3 2 1

Ukraine 0 0 4 0 0 0 4 4 0

Benin 0 0 0 0 0 0 2 0 2

Nigeria 0 0 0 0 0 0 4 0 4

TBD 0 0 0 0 0 0 6 0 6


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target

LOP Target

Achieved To Date

Remaining

1. Technology Commercialization Component 1 0 608 398 62 2,432 0 6,118 1,068 5,050

2. Partnership Development Component 2 0 0 7,871 7,632 8,278 0 27,694 15,504 12,191

Mozambique 0 0 7,611 6,761 3,880 0 15,371 14,372 999

Malawi 0 0 146 429 1,150 0 2,446 575 1,871

Guatemala 0 0 0 230 570 0 1,720 230 1,490

Ukraine 0 0 114 213 2,678 0 8,157 327 7,830

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target

LOP TargetAchieved To Date

Remaining

1. Technology Commercialization Component 1 30 257 9,511 2,125 19,890 0 45,894 11,923 33,971

2. Partnership Development Component 2 0 0 38 13,376 38,030,611 0 54,795,512 13,413 54,782,098

Mozambique 0 0 0 12,374 59,911 0 74,174 12,374 61,800

Malawi 0 0 38 2 7,200 0 7,838 39 7,798

Guatemala 0 0 0 0 1,000 0 1,000 0 1,000

Ukraine 0 0 0 1,000 37,962,500 0 54,712,500 1,000 54,711,500

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining

1. Technology Commercialization * Component 1 7,485 27,574 203,359 150,976 20,090 0 400,000 389,394 10,606

2. Partnership Development Component 2 0 0 315 10,918 83,882 0 102,784 11,233 91,551

Mozambique 0 0 298 9,827 39,050 0 48,712 10,125 38,587

Malawi 0 0 17 497 24,000 0 26,017 514 25,503

Guatemala 0 0 0 0 5,000 0 5,000 0 5,000

Ukraine 0 0 0 594 15,832 0 23,055 594 22,461

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0

Required FTF Indicator 4.5.2-12

Number of public-private partnerships formed as a result of FTF assistance

Component 2 (by mission)


Number of farmers and others who have applied new technologies of management practices as a result of USG assistance




Value of new private sector investment in the agriculture sector or food chain leveraged by FTF implementation (US$,000)


* Increase of LOP target from 21 to 25 technology commercialization partnerships due to an additional fifth round of central funding

** Decrease of LOP target from 31 to 29 mission partnerships due to 3 expected partnerships for Round 2 Mozambique and 2 for Round 2 Guatemala


Number of hectares under improved technologies or management practices as a result of USG assistance

Program Impact


Page 16


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target

LOP Target

Achieved To Date

Remaining



Mozambique 0 0 4 0 0 0 7 4 3

Malawi 0 0 3 0 0 0 3 3 0

Guatemala 0 0 1 1 0 0 3 2 1

Ukraine 0 0 4 0 0 0 4 4 0

Benin 0 0 0 0 0 0 2 0 2

Nigeria 0 0 0 0 0 0 4 0 4

TBD 0 0 0 0 0 0 6 0 6


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target

LOP Target

Achieved To Date

Remaining



Mozambique 0 0 7,611 6,761 3,880 0 15,371 14,372 999

Malawi 0 0 146 429 1,150 0 2,446 575 1,871

Guatemala 0 0 0 230 570 0 1,720 230 1,490

Ukraine 0 0 114 213 2,678 0 8,157 327 7,830

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining

1. Technology Commercialization Component 1 30 257 9,511 2,125 19,890 0 45,894 11,923 33,971

2. Partnership Development Component 2 0 0 38 13,376 38,030,611 0 54,795,512 13,413 54,782,098

Mozambique 0 0 0 12,374 59,911 0 74,174 12,374 61,800

Malawi 0 0 38 2 7,200 0 7,838 39 7,798

Guatemala 0 0 0 0 1,000 0 1,000 0 1,000

Ukraine 0 0 0 1,000 37,962,500 0 54,712,500 1,000 54,711,500

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining

1. Technology Commercialization * Component 1 7,485 27,574 203,359 150,976 20,090 0 400,000 389,394 10,606

2. Partnership Development Component 2 0 0 315 10,918 83,882 0 102,784 11,233 91,551

Mozambique 0 0 298 9,827 39,050 0 48,712 10,125 38,587

Malawi 0 0 17 497 24,000 0 26,017 514 25,503

Guatemala 0 0 0 0 5,000 0 5,000 0 5,000

Ukraine 0 0 0 594 15,832 0 23,055 594 22,461

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0


Number of public-private partnerships formed as a result of FTF assistance



Number of farmers and others who have applied new technologies of management practices as a result of USG assistance




Value of new private sector investment in the agriculture sector or food chain leveraged by FTF implementation (US$,000)





Number of hectares under improved technologies or management practices as a result of USG assistance

Program Impact


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining

1. Technology Commercialization Component 1 2 15 7 1 0 0 32 25 7

2. Partnership Development Component 2 0 0 8 17 31 4 77 25 52

Mozambique 0 0 5 6 9 0 25 11 14

Malawi 0 0 3 3 0 0 12 6 6

Guatemala 0 0 0 0 7 0 10 0 10

Ukraine 0 0 0 8 0 0 11 8 3

Benin 0 0 0 0 4 0 4 0 4

Nigeria 0 0 0 0 4 2 6 0 6

TBD 0 0 0 0 7 2 9 0 9


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 8,837 8,639 4,848 0 18,534 17,476 1,058

Malawi 0 0 350 679 1,431 0 3,213 1,029 2,184

Guatemala 0 0 0 458 713 0 2,142 458 1,684

Ukraine 0 0 334 490 3,348 0 10,388 824 9,564

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 4 0 0 0 7 4 3

Malawi 0 0 3 0 0 0 3 3 0

Guatemala 0 0 1 1 0 0 3 2 1

Ukraine 0 0 4 0 0 0 4 4 0

Benin 0 0 0 0 0 0 2 0 2

Nigeria 0 0 0 0 0 0 4 0 4

TBD 0 0 0 0 0 0 6 0 6


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 2 2 4 0 7 4 3

Malawi 0 0 1 1 0 0 3 2 1

Guatemala 0 0 0 0 3 0 3 0 3

Ukraine 0 0 0 2 0 0 4 2 2

Benin 0 0 0 0 2 0 2 0 2

Nigeria 0 0 0 0 3 1 4 0 4


Required Custom Indicator


* Increase LOP target from 318,715 to 400,000 to better reflect farmer beneficiaries to date



Number of technologies commercialized in FTF countries (counted as number of agreements signed with program partners)


Number of technologies or management practices made available for transfer as a result of USG assistance



Value of total private sector funding leveraged in the agriculture sector or food chain as a result of FTF assistance (US$,000)


Number of program-funded technologies with initial sales (counted as number of program partners with initial sales)


Page 17



ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 5 6 9 0 25 11 14

Malawi 0 0 3 3 0 0 12 6 6

Guatemala 0 0 0 0 7 0 10 0 10

Ukraine 0 0 0 8 0 0 11 8 3

Benin 0 0 0 0 4 0 4 0 4

Nigeria 0 0 0 0 4 2 6 0 6

TBD 0 0 0 0 7 2 9 0 9


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 8,837 8,639 4,848 0 18,534 17,476 1,058

Malawi 0 0 350 679 1,431 0 3,213 1,029 2,184

Guatemala 0 0 0 458 713 0 2,142 458 1,684

Ukraine 0 0 334 490 3,348 0 10,388 824 9,564

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 4 0 0 0 7 4 3

Malawi 0 0 3 0 0 0 3 3 0

Guatemala 0 0 1 1 0 0 3 2 1

Ukraine 0 0 4 0 0 0 4 4 0

Benin 0 0 0 0 0 0 2 0 2

Nigeria 0 0 0 0 0 0 4 0 4

TBD 0 0 0 0 0 0 6 0 6


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 2 2 4 0 7 4 3

Malawi 0 0 1 1 0 0 3 2 1

Guatemala 0 0 0 0 3 0 3 0 3

Ukraine 0 0 0 2 0 0 4 2 2

Benin 0 0 0 0 2 0 2 0 2

Nigeria 0 0 0 0 3 1 4 0 4
















Program Impact


Page 18Program Impact


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 5 6 9 0 25 11 14

Malawi 0 0 3 3 0 0 12 6 6

Guatemala 0 0 0 0 7 0 10 0 10

Ukraine 0 0 0 8 0 0 11 8 3

Benin 0 0 0 0 4 0 4 0 4

Nigeria 0 0 0 0 4 2 6 0 6

TBD 0 0 0 0 7 2 9 0 9


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 8,837 8,639 4,848 0 18,534 17,476 1,058

Malawi 0 0 350 679 1,431 0 3,213 1,029 2,184

Guatemala 0 0 0 458 713 0 2,142 458 1,684

Ukraine 0 0 334 490 3,348 0 10,388 824 9,564

Benin 0 0 0 0 0 0 0 0 0

Nigeria 0 0 0 0 0 0 0 0 0

TBD 0 0 0 0 0 0 0 0 0


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 4 0 0 0 7 4 3

Malawi 0 0 3 0 0 0 3 3 0

Guatemala 0 0 1 1 0 0 3 2 1

Ukraine 0 0 4 0 0 0 4 4 0

Benin 0 0 0 0 0 0 2 0 2

Nigeria 0 0 0 0 0 0 4 0 4

TBD 0 0 0 0 0 0 6 0 6


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining



Mozambique 0 0 2 2 4 0 7 4 3

Malawi 0 0 1 1 0 0 3 2 1

Guatemala 0 0 0 0 3 0 3 0 3

Ukraine 0 0 0 2 0 0 4 2 2

Benin 0 0 0 0 2 0 2 0 2

Nigeria 0 0 0 0 3 1 4 0 4
















TBD 0 0 0 0 4 2 6 0 6


ReportingFY 2013

AchievedFY 2014

AchievedFY 2015

AchievedFY 2016


FY 2018 Target


Remaining

3. Investment Models and Case Studies Project-Level 0 11 4 0 4 4 27 15 12


Number of investment designs/models idenfitied



Note that this indicator is lower than the previous custom indicator as 2 partners (World Cocoa Foundation and AGCO) closed with no sales

Page 19


challengeS and SolutionS

In 2013, USAID approved a Partnering for Innovation partnership with Netafim to increase the sales of smallholder farmer drip irrigation in Kenya. Netafim proposed to work with Amiran, a local input supplier, and Connexus, a financial consulting firm, to design and, using commercial bank financing, sell drip irrigation kits with vegetable seed and fertilizer packages, while offering technical assistance and after sales support.

Since the up-front costs of drip irrigation are substantial, providing access to finance was integral to this model’s success. Connexus agreed to negotiate a first-of-its-kind consumer loan package with at least two commercial banks, allowing for a 30 percent farmer down payment, a six-month grace period, and up to 24 months to pay off the loan. Amiran agreed to offer a 70 percent buy-back guarantee on the remaining balance of the loan, further reducing the risk of this program.

Despite having a training and customer support package, a buy-back guarantee, the initial interest of two commercial banks, and significant smallholder interest in applying to the program, banks did not approve many loans. By the end of the 30-month program, Netafim did not meet even the initial $500,000 sales target, despite Connexus’ efforts to identify and sign on 12 financial institutions to the program. However, the partners did create an innovative smallholder-focused customer support system, including dial-up services, instruction manuals on key crop production, and smallholder and banker training on agriculture and drip irrigation, as well as building better relationships with commercial banks targeting the agriculture sector.

“ We wouldn’t have gotten this far without the support of the Partnering for Innovation grant. We are not going to give up on this model.

Nitzan Bauer, local project manager, Amiran Kenya


Netafim

agco

Market conditions and macroeconomic instability in Zambia forced AGCO to reconsider its product offering for small-scale grain storage silos for village-level traders. While AGCO initially generated interest in the product through promotional activities and partnerships with end-market grain aggregators, challenges in securing customer financing prevented sales from materializing. As a result of this and other factors, AGCO did not sell any of its silos. This prevented GSI-Africa, the distributor, from maintaining a steady supply of equipment, which could have decreased the price of the product.

During this same period the Zambian Kwacha relative to the US dollar devalued by nearly 60 percent. With the price of the silo remaining constant in dollars and bank interest rates rising, there was a weak business case for traders to purchase the silo on credit. Finally, Zambia continues to experience drier growing conditions than expected, and lower grain projections overall further reduced demand. However, AGCO remains committed to expanding its business in Zambia – and more widely in Africa – noting that the potential of the smallholder market remains unchanged. At a corporate level, AGCO is determining what products it should offer for traders and smallholders to move from bag to bulk storage. AGCO also underscored the importance of having secured financing for its technologies in place prior to market entry.


Page 20

Partnering for Innovation set up its monitoring and evaluation system to gather data on business indicators. For example, by reporting on seed sales, the program can calculate the amount of land under improved production. The mid-term evaluators recommended that Partnering for Innovation also collect data from end users, especially to capture the impact of technologies on smallholder incomes as well as the number of women using improved technologies. As a result, the program is exploring ways to conduct user surveys to gather additional data on farmers.


moNitoriNg aNd evaluatioN

geNder

Also as a result of the mid-term evaluation, Partnering for Innovation collaborated with a gender expert to develop a strategy to more deeply incorporate gender into program activities. The resulting work plan includes tools that will allow the program to mine its partnerships for more information on gender impact, provide data on gender, develop gender-related stories, and create tools that demonstrate to partners the importance of considering gender from a sales and marketing standpoint.