USAID AGRO HORIZON YEAR 1 ANNUAL REPORT

The project's objective directly supports the USAID Kyrgyz Republic country development cooperation strategy, which aims to accelerate the growth of a diversified and equitable economy. The project's zone of influence includes the Osh, Batken, Jalalabad, and Naryn oblasts, which are home to 55 percent of the total population and have a poverty rate of 49 percent. A value chain assessment conducted in December 2014 identified the fruit, vegetables, livestock, and dairy value chains as having the greatest potential to maximize incomes and nutrition of smallholder farmers and contribute to overall agricultural growth in the target areas. The assessment recommended early interventions begin with these four value chains, which met the criteria with the highest scores in terms of income potential, growth potential, importance to food security and nutrition, impact on women, reach of target farmers, relevance to the project's target indicators, potential for intensification/expansion, and potential for project success. Agro Horizon conducted a gender assessment as the basis for the development of a gender strategy that included a gender action plan to ensure women's active and equitably beneficial involvement in project activities. The research analyzed gender roles, behaviors, constraints, and opportunities, and the gender team took an active role in integrating practical gender activities into the scopes of work for initial catalyzing grants. The project team initiated the planning process of designing models for Year 2, during which several feasibility assessments were conducted resulting in the identification of Year 2 value chains. Further, a winter milk model was tested that could be replicated in future value chains. In Year 2, value chains that were successfully piloted with catalyzing grants in Year 1 will be scaled up, including potato seed production, livestock, apricot, and nursery fruit trees. The geographic focus of the project is defined as the entirety of Naryn, Jalalabad, Osh, and Batken oblasts. The project team conducted outreach activities, including four regional roundtables in the zone of influence to identify potential partners and get a sense of the enabling environment at the regional level. Representatives of local governments and other stakeholders helped define specific areas of opportunity by value chain and identify key participants in project interventions. Official letters from the local government requesting project interventions were received by Agro Horizon after the roundtable. The project's program implementation plan was originally intended to coincide with the start of the agricultural planning cycle. Delays in staffing, however, resulted in a pushed-back timeline that extended several months into the 2015 agriculture season. To make up for this delay, Agro Horizon amended the program approach and introduced a catalyzing grants initiative through the Project Fund. Agro Horizon began the solicitation process with an open call for program-related grants that directly supported the goals of the program. Overall, 12 grants and three contracts were awarded to strengthen target value chains. The project team mobilized farmers in two oblasts of southern Kyrgyzstan in autumn of Year 1, and trainings will start in early Year 2 for a total of 2,800 farmers. After the catalyzing grants were underway, the project team initiated the planning process of designing models for Year 2. During this period, several feasibility assessments were conducted resulting in the identification of Year 2 value chains. Further, a winter milk model was tested that could be replicated in future value chains. The project's annual cumulative accomplishments include 4,863 rural households benefiting directly from training and technical assistance, and 225 food security private enterprises, producers organizations, water users associations, women's groups, trade and business associations benefiting from project interventions.