Georgian Hazelnut Improvement Project (G-HIP) Quarterly Progress Report

As part of a long-term sustainability strategy, G-HIP focuses on enhancing the institutional capacity of the Georgian Hazelnut Growers Association (GHGA) through the provision of management, finance, and human resources training to association staff. G-HIP places a high priority in assisting GHGA to improve its governance, build its financial competency, optimize and maintain its operations, establish a performance management system, improve branding and outreach, grow its membership, and introduce new services for the sector. During the reporting period, the COVID-19 pandemic persisted as a significant risk to global and regional health and economic activity. To operate in this environment, the G-HIP team took every opportunity to adapt to these restrictions and limitations, offering distanced meetings and trainings, conducting calls and online meetings, and using video or online platforms to raise awareness or create learning content. Despite the ongoing challenges posed by the pandemic, the first quarter of G-HIP's final year was marked by continued progress toward achieving G-HIP's vision. Key accomplishments included providing support to GHGA to introduce traceability and warehouse receipts tools to Association members, delivering technical assistance to address emerging issues facing hazelnut plant health, achieving advancements in the development of traceability software, and making progress toward further development of hazelnut HDS infrastructure in the Guria region. G-HIP worked closely with the Ministry of Environmental Protection and Agriculture (MEPA), the National Food Agency (NFA), and the Rural Development Agency (RDA) to address challenges facing the hazelnut sector and facilitate the financing of hazelnut HDS facilities. These activities contributed significantly to achieving G-HIP's vision for the hazelnut sector in Georgia, which includes strengthening GHGA and the Hazelnut Exporters and Processors Association (HEPA) to develop and maintain sustainable business models, strengthen the hazelnut value chain, improve the sector's productivity and quality, stimulate international recognition of the "Georgian Hazelnut" as a brand synonymous with quality, and represent the sector before the Government of Georgia (GoG) and in international markets. G-HIP's management team collaborated with all relevant stakeholders and implemented activities within its three components to address and mitigate the development challenges that were identified. The primary focus was on institution building (particularly related to association sustainability), capacity building for hazelnut growers, and improvements in hazelnut quality by encouraging broader utilization of critical post-harvest handling infrastructure (i.e., hazelnut husking, drying, and storage (HDS) facilities). G-HIP's ongoing support to the NFA activities and facilitation of presentation of traceability software to GHGA leadership were also notable achievements during the quarter. The G-HIP team made significant progress in the development of hazelnut HDS infrastructure in the Guria region, with the establishment of a new HDS facility. G-HIP supported USAID visit to the newly established HDS facility in Guria and facilitated GHGA's membership in the International Nut and Dried Fruit Council (INC). These achievements demonstrate G-HIP's commitment to strengthening the hazelnut sector in Georgia and improving the quality and quantity of hazelnut production. G-HIP's annual report was submitted to USAID and AgriGeorgia/Ferrero for approval, and FTF, PPR, PPP, and GIS reports were submitted to USAID. G-HIP awarded GHGA the subaward for registration of farmers in the Hazelnut Traceability Software – Vault Orchard Module and for obtaining loans using the Warehouse Receipt (WR) system. The G-HIP team also facilitated presentation of traceability software to GHGA leadership and supported GHGA's membership in the International Nut and Dried Fruit Council (INC). These achievements demonstrate G-HIP's commitment to strengthening the hazelnut sector in Georgia and improving the quality and quantity of hazelnut production.