Quarterly Report: Feed the Future Partnership for Sustainable Supply Chains

Agency for International Development (USAID) Bureau for Resilience and Food Security (RFS), Keurig Dr Pepper (KDP), and Ezrah Charitable Trust. The partnership aims to support rural agribusinesses in developing countries, particularly in the face of the COVID-19 pandemic. Technical advisory services and capacity building are provided to 54 agribusinesses over the life of the project, including short-term business continuity and contingency planning, proactive planning and capacity building, and optimizing resiliency and adapting business processes. A Debt Relief Fund is also established to facilitate patient terms, interest rate relief, liquidity support, and debt forgiveness for rural enterprises. KDP funding supports resilience grants for 20 PSSC coffee enterprises to address enterprise cash flow constraints in the face of increased product demand or supply chain disruptions. Ezrah Charitable Trust supports general operating costs associated with PSSC activities. During the reporting period, January through March 2021, 16 agricultural enterprises received Business Management Advisory (BMA) services and support across Peru, Nicaragua, Honduras, and Ghana. As of the reporting period, a total of 19 enterprises received COVID-19 Resilience Grants. The debt relief fund was not utilized this quarter, as Root Capital strives to prevent borrowers from defaulting on their loan obligations. In Honduras, Root Capital completed diagnostics and annual work plans with three clients and provided training focused on Internal Controls, Financial Planning, and Financial Literacy. In Nicaragua, diagnostics and work plans were completed with three clients, with individual advisory engagements to begin in the next quarter. In West Africa, advisory services have focused on supporting enterprises in Ghana, while Root Capital completes final services with clients in Senegal and Côte d'Ivoire. In Ghana, three clients received BMA services specifically on Accounting, while challenges around conducting remote workshops persist due to client preferences for in-person training and volatile internet connectivity. In Southeast Asia, clients in Indonesia did not receive advisory services this period, but Root Capital has continued to conduct tax-related assessments for clients in response to the country's ongoing tax auditing procedures. The COVID-19 Resilience Grants have undergone a shift in focus from immediate assistance to more long-term recovery efforts and re-stabilization of business operations. Each business underwent a brief assessment to understand the impacts of COVID-19 on their business, farmers, and the broader community. The grants have been used to subsidize income during months of uncertainty, create social emergency funds, prioritize food security, and invest in increased profitability and improved quality and production. Overall, the PSSC partnership has made significant progress in supporting rural agribusinesses and communities affected by the COVID-19 pandemic. The partnership's efforts have focused on building resilience, adapting business processes, and providing flexible funding to support long-term recovery and sustainability.