Quarterly Report – Year Three Quarter One: USAID Serbia Agribusiness Project

The project's main goal was to transition to different operating modes that would generate higher impact per dollar, such as trade show implementation, and to build local capacity. This transition is expected to serve as the practical platform upon which the project will build a legacy of replacing its technical and management contributions with local entities and institutions capable of providing these services to the Serbian agricultural sector. The project has produced a reliable cadre of expat STTA specialists who can be called upon for high-impact short-term work. These specialists have expanded their expectations to include contributing to capacity building at universities and other institutions while in-country. Technical approval received during the quarter for proposed budget modifications has resulted in smoother and more efficient operational approaches, allowing the project to increase its implementation rate with increased confidence in the soundness of its portfolio. However, a serious issue has arisen due to the failure of SIEPA and the Ministry of Agriculture to fulfill their commitments to provide financial support for international trade shows and fairs. In response, the project has made it known to SIEPA and the ministry that project funds cannot be used to replace the deficit now existing for these international events. The project has adopted an approach to these events that emphasizes outsourcing their implementation, mainly through associations, which requires a more direct financial contribution from the firms attending the events. The project has also transitioned to new approaches to managing the important project sub-sectors of Livestock and Youth & Gender. The project will utilize grant funds to obtain services from local partners that have succeeded in improving agricultural efficiency in the past. Organizations now under consideration by project management include the Fruits of Serbia association, Serbia Organica Association, Junior Achievement, Agrar Kontakt, and Agropress. The quarterly impact survey reported results from 67 clients, who reported $17.3 million in contracted and under negotiation sales, with $5.7 million of this already delivered. Approximately half of these amounts represented exports, which are crucial in mitigating the impact of the continuing financial crisis. The results are encouraging, suggesting that project activities remain appropriate for reaching program goals and objectives. Component 1 of the project, Increased Efficiency & Competitiveness of Agribusiness, focused on commodity action plan activities, including the establishment of fresh berries as a sub-industry and improving the competitiveness of value-added processed berries. The project supported presentations of ozone generators, client exhibits at the ANUGA Trade Fair, and the establishment of a new national growers association "Serbian Blueberry." Despite the global crisis affecting the Serbian berry industry, project clients maintained their interest in participating in activities designed and offered by the project during the quarter. Component 1 also included activities related to dairy products, such as the implementation of a range of cross-cutting and sector-specific technical assistance programs and grants, including training for cooperative managers, marketing and promotional grants, and international standards grants. The project continued to support these activities over the quarter, despite the challenges posed by the global crisis. The project's efforts to increase efficiency and competitiveness in the agribusiness sector have been successful, with clients reporting significant sales and exports. The project's transition to new approaches and its focus on building local capacity are expected to have a lasting impact on the Serbian agricultural sector.