Document Type: Progress Reports

The purpose of AgroInvest is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest is achieving this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Environment
  Task 1-a: Accelerate Market Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Sustainable Access to Financial Services for SMPs Provided
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project, extending to an estimated completion date of January 24, 2016. The scope of this project encompasses the following U.S. Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

In July-September 2012, the AgroInvest project team continued technical implementation activities in the project focus areas. Key activities and accomplishments during this period included the following:

• Prepared draft Laws on Agrarian Receipts and on the Guarantee Fund for the System of Grain Warehouse Receipts for discussion in the parliament and approved by the Verkhovna Rada in the first reading on September 6, 2012. Development of these draft laws was supported through a subcontract with the Agrarian Markets Development Institute (AMDI).
• Signed and commenced implementation of six grant agreements with agricultural industry associations, selected through a competitive process.
• Launched and scaled up the Legal Land Rights Services Program to help citizens understand and protect their land rights. This program is operational at the national level (through the Land Rights Resource Center and Web-portal project) and in seven oblasts of Ukraine (through grant agreements with three providers of secondary legal land rights services).
• Completed grant competition and identified partner to provide primary and secondary legal land rights services in Dnipropetrovsk oblast.
• Completed tender and identified partner for the Land Rights Public Education and Outreach Campaign. The campaign will be launched in the next reporting period.
• Finalized and pre-tested instruments for the Baseline Survey on Land Rights Awareness, Small- and Medium-scale Agricultural Producers Access to Finance, and Agricultural Market Infrastructure. The survey will be conducted in the next reporting period.
• Developed the concept of specialized software for agrilending to SMPs for Erste Bank Ukraine to use for assessing SMPs credit applications.
• Concluded subcontract for market survey on the current status of agrilending to SMPs (bank/finance sector) with the objective to identify focus subsectors (agrifood products) and opportunities for developing effective agrilending to SMPs by Project partner financial institutions.
• Supported establishment of training series “Specific Features of Financial Service Marketing in Rural Areas” for the credit union specialists who are members of the working groups on agrilending. The training sessions included 79 participants and focused on creating new products for small and medium-sized agriculture producers and developing strategies for effective sales.
• The Information and Consultative Service, LLC, a project subcontractor, presented an analytical conclusion regarding available methodologies applied in conducting audits and inspections of credit union activities and developed the methodology of conducting internal audits of a credit union for its application by the Service of Internal Audits of the National Association of Credit Unions of Ukraine (NACUU).
• Conducted an intensive series of agrotechnological trainings for SMPs and credit unions’ credit officers to stimulate access to finance.
• Identified producer organizations and conducted analysis for their funding development.
• Developed a legal platform for Owner Financing Mechanism (OFM).
• Conducted seven focus groups in six oblasts for land share owners and farmers in rural areas on the OFM.
• Conducted the second round of the post-harvest handling and logistics grant program. Of the 13 applications received from cooperatives and producer organizations, six applicants were selected as grant recipients.
• Completed the second phase for preparing the design and feasibility study for the wholesale agriculture market “Shelen” in Rivne oblast. The prepared pre-design proposal for the market development including the explanatory note, market layout, traffic flows, floor plans, facades, cross sections, color solutions, 3D images, engineering networks layout, and energy resources requirements has been completed.
• As part of support to a network of five rayon markets/logistics platforms in Kherson oblast, AgroInvest selected a subcontractor through a competitive tender for preparing the pre-design and feasibility study for market development in Hola Prystan raion.

The purpose of AgroInvest is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest will achieve this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Environment
  Task 1-a: Accelerate Market Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Sustainable Access to Financial Services for SMPs Provided
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project, extending to an estimated completion date of January 24, 2016. The scope of this project encompasses the following US Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

The AgroInvest project was launched on January 25, 2011. The home office start-up team flew to Ukraine within three days of contract signing to facilitate technical, financial, logistical, and administrative mobilization. In February and March, the project team focused on technical and administrative start-up activities that included fielding expatriate staff, recruiting local staff, work planning, project registration, project introduction to local partners, selection of office space, and office equipment procurement. Key activities and accomplishments during this period included:

• Key personnel including Chief of Party (COP) Craig Bell and Deputy Chief of Party (DCOP) Oleksandr Kaliberda mobilized within two weeks of contract start date.
• Work planning workshop with participation of key partners, short-term experts, and USAID carried out.
• AgroInvest Year 1 Work Plan drafted, submitted, and approved by USAID.
• AgroInvest Performance Monitoring Plan drafted, submitted, and approved by USAID.
• AgroInvest staff presented project to U.S. Ambassador and Deputy Chief of Mission.
• A land market roundtable discussion co-organized in collaboration with the Local Investment and National Competitiveness (LINC) project in response to a request from the State Agency for Land Resources.
• Grain quotas brief provided to USAID.
• Scope of work (SOW) prepared for Agricultural Policy Environment and Food Security Assessment.
• Preparation initiated for Policy Environment and Food Security Assessment.
• Preparation initiated for Regulatory and Institutional Constraints to SMP Finance Assessment.
• Preparation initiated for Rapid Assessment of Legal and Institutional Framework for Industry Associations.
• Letter of intent signed with the Agrarian Markets Development Institute outlining anticipated areas of collaboration.
• Six long-term staff hired for project start-up with individuals identified to fill the majority of remaining vacancies in the Kyiv project office.
• Project registration process launched with the Ministry of Agrarian Policy and Food (MAP).
• AgroInvest project office identified that meets location, space, security, and cost requirements.
• Computer and office equipment procurement tender announced.

The purpose of AgroInvest is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest is achieving this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Environment
  Task 1-a: Accelerate Market Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Sustainable Access to Financial Services for SMPs Provided
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project, extending to an estimated completion date of January 24, 2016. The scope of this project encompasses the following U.S. Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

In April, May, and June 2012, the AgroInvest project team continued technical implementation activities in the project focus areas. Key activities and accomplishments during this period included the following:

• The research phase of Land Governance Assessment Framework (LGAF) study has been successfully completed in accordance with LGAF methodology, including preparation of six background reports and holding nine land expert panel sessions involving 36 representatives of NGOs, research institutions, Government of Ukraine (GOU) and business entities.
• In partnerships with USAID and the World Bank, AgroInvest presented and discussed with officials from the GOU the findings and recommendations of the LGAF study. Based on the discussions, a final LGAF report has been drafted.
• The document is currently being finalized between USAID and the World Bank, and will be formally submitted to GOU in August, 2012.
• A grant agreement with the Land Union of Ukraine to implement the Land Rights Resource Center and Web-portal project was signed on June 11, 2012. The Resource Center has been launched, fully staffed, and is operational.
• The grant competition for provision of secondary legal land rights services has been completed, and the winners identified. The program is ready to be launched in seven oblasts in Ukraine.
• Seven agricultural industry associations have been selected through a competitive process for grant awards to build their capacity in advocacy and agricultural policy analysis.
• A subcontract was signed with the winner of the competition for implementation of the Baseline Survey on Land Rights Awareness, Small- and Medium-scale Agricultural Producers Access to Finance, and Agricultural Market Infrastructure; and sampling methodology and instruments for the survey and y were developed.
• Erste Bank Ukraine has agreed to cooperate with AgroInvest in order to develop agrilending to SMPs within their Micro-business department. The main areas of improvement of the bank’s agrilending practices were identified including acquiring knowledge on agrotechnologies for their credit analysts and setting up the software ensuring adequate risk assessment for credit applications of SMPs.
• Partnership with the Ukraine MSME Lending Program, a partner of EBRD Micro-Lending program, was established. The 3-year EBRD Micro-Lending Program will select several Ukrainian banks in order to allow them to access the EBRD loans targeted for increasing MSME financing. The partnership with the Ukraine MSME Lending Program is aimed at supporting development of capacity and volumes of agrilending provided by bank institutions to SMPs. It will facilitate the formulation of a proper legislative framework for developing the banking system with a focus on expansion and increase of the volume of lending to SMPs; allow for the organization and delivery of seminars, round tables, exhibitions and other similar events for representatives from MSMEs and banking institutions actively cooperating with this target group and share experience in development of methodological and other materials aimed at expanding and increasing agrilending to SMPs.
• An innovative approach of developing well-branded software as an instrument of reliable risk assessment for SMPs’ applications by financial institutions was developed.
• A training campaign on issuing titles to land plots was conducted for credit union officers who are engaged in lending to small and medium-sized agriculture producers and will provide informational support on land issues to credit union members’ land owners when receiving loans. A practical guide on forming land plots and issuing titles to land plots for the purpose of extending loans by credit unions to individuals to cover costs of such activities was also developed.
• Three regional training courses entitled “Specific aspect of lending to SMPs” were conducted in various regions of Ukraine. This was the first module of a comprehensive training program intended to enhance techniques of lending to SMPs through credit unions. 52 specialists from 51 credit unions from all regions attended the courses. They will use the knowledge and tools they gained at the training events on practices of lending to SMPs with the assistance from the project.
• A series of trainings on modern agrotechnologies were conducted for SMPs in collaboration with financial institutions and VCAs to increase awareness on the best modern practices and facilitating access to finance for SMPs.
• During the quarter, AgroInvest producer organization development specialists conducted the second round of the post-harvest handling and logistics grant program for producer organizations. The Project received 13 applications from cooperatives and other producer organizations. Six applicants were selected for direct project financial support. AgroInvest provided recommendations to another six applicants, requesting the producer organizations to revise their submissions and reapply in the following round. In addition, two pre-award determinations have been completed and two grant agreements were drafted to support projects on post harvest handling and logistics selected for awards during the first round of the grant program for producer organizations.
• A subcontractor for preparing the design and feasibility studies for development of the regional wholesale market in Rivne has been selected through a competitive process. Studies of production and marketing of agriculture produce in the future market’s supply area have been completed as the first phase of activities under this subcontract.
• As support to a network of five rayon markets/logistics platforms in Kherson oblast, AgroInvest specialists participated in the official opening of the first phase of Hola Prystan, a wholesale-and-retail agriculture market. Additionally AgroInvest announced a tender for making the design and feasibility studies for the second phase of this market.

The purpose of AgroInvest is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest is achieving this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Environment
  Task 1-a: Accelerate Market Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Sustainable Access to Financial Services for SMPs Provided
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project, extending to an estimated completion date of January 24, 2016. The scope of this project encompasses the following U.S. Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

In January, February, and March 2012, the AgroInvest project team continued technical implementation activities in the project focus areas and established a new project presence in Kherson, facilitating outreach across southern Ukraine. Key activities and accomplishments during this period included the following:

• The project put major effort into monitoring and responding to changes to the draft Law on Land Market. After the first reading of the law in the Verkhovna Rada in November 2011, AgroInvest succeeded in achieving two of its key advocacy positions, i.e. removing the exclusive right of the State Land Bank to issue mortgages for agricultural land and removing the 6-month limitation on commercial banks holding land on which they foreclose. Nevertheless the continued unclear role that the State Land Bank would play in the new market, along with draconian limits imposed on land leasing, meant that AgroInvest also supported suspension of the law in its current form. This was effected in conjunction with project partners in February 2012.
• The second phase of the National Land Rights Media Campaign was conducted during this quarter, consisting of four media training sessions covering the remaining 10 oblasts of Ukraine and involving a total of 223 journalists. 131 pieces of press coverage on the issue of the pending land market and its implications for rural landowners and farmers were registered reaching an estimated 17 million Ukrainians.
• The World Bank/AgroInvest Land Governance Assessment Framework (LGAF) initiative was conducted intensively through the quarter, with seven Expert Panel Sessions, involving 30 Government of Ukraine (GOU), non-governmental organization (NGO) and independent professional experts gathering to evaluate Ukrainian land governance mechanisms, prior to presentations in to the World Bank in Washington and GOU in Kyiv in April and May 2012, respectively.
• AgroInvest responded to the Ministry of Agrarian Policy and Food’s (MAPF) requests to support the development of a series of revised pieces of legislation governing agricultural cooperative organization and taxation. AgroInvest, also on the request of the Ministry, engaged the Union of Agricultural Cooperatives to develop model cooperative statutes for discussion, formal approval and dissemination for use, in conjunction with training across the country.
• AgroInvest signed a bridge subcontract with the Agrarian Markets Development Institute (AMDI) on January 31, 2012, enabling AMDI to engage in priority policy issues, including the provision of secretarial support to the new Public Council under MAPF, which began gathering approximately 40 industry associations on agricultural policy issues, using this as the primary vehicle for furthering its technical policy work refining the draft Law on Agrarian Receipts and refining the Law on Warehouse Receipts.
• Over 15 new agricultural small and medium producer (SMP) lending products were developed during the quarter for national and regional banks as well as credit unions, with a particular focus on Crimea and Kherson oblasts. Of these credit products, two have received formal approval by the boards of the relevant financial institutions, and all are undergoing fine-tuning and presentation to target audiences of SMPs. One, a new title deed registration product for credit unions, was finalized during the quarter.
• US Farm Credit System expert Vickie Cosentino conducted a review of the Ukrainian credit union system and lending practices, compared it to the US experience, developed recommendations, and delivered a successful training to over 58 representatives of the two project-supported national credit union association task forces.
• AgroInvest producer organization development specialists conducted the first round of the post-harvest handling and logistics grant program during the quarter. The Project received 11 applications from cooperatives and producer organizations. AgroInvest provided input to five applicants, requesting them to revise their submissions and reapply in the following round. Three applicants were selected for direct project financial support.
• Market infrastructure work focused on gaining MAPF recognition of status and developing feasibility studies for the regional wholesale market in Rivne. Support to a network of five raion markets/logistics platforms was also agreed in Kherson Oblast and implementation work initiated. In Crimea, the Project provided consultations on market organization and conducted initial work on feasibility study design for two local logistics centers.

The purpose of AgroInvest is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country‟s contribution to global food security efforts. AgroInvest will achieve this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Environment
  Task 1-a: Accelerate Market Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Sustainable Access to Financial Services for SMPs Provided
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project, extending to an estimated completion date of January 24, 2016. The scope of this project encompasses the following US Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

In the months of October, November and December 2011, the project team continued technical implementation activities in the project focus areas, having completed technical and administrative start-up activities for its offices in Kyiv and Simferopol. Key activities and accomplishments during this period included the following:

• The project put major effort into monitoring and responding to changes to the draft Law on Land Market. When the first reading in the Verkhovna Rada of the law took place on 17 November, AgroInvest succeeded in two of its key advocacy positions, i.e. delaying implementation of the agricultural land market to 1 January 2013 and removing the GOU preemptive right.
• The first round of the National Land Rights Media Campaign was conducted during this quarter, consisting of five media training sessions covering 15 oblasts of Ukraine and involving a total of 297 journalists. Eighty-eight pieces of press coverage on the issue of the pending land market and its implications for rural landowners and farmers were registered reaching an estimated 3.8 million Ukrainians.
• The AgroInvest Land Governance Assessment Framework initiative was launched in December 2011. This work, following the World Bank model, is scheduled to be conducted during the first quarter of 2012 and will provide research and policy recommendations on legislative, regulatory and implementational obstacles to land administration in Ukraine that will feed into ongoing AgroInvest land market development work.
• AgroInvest supported a key agricultural futures market initiative led by the Ukrainian Futures Exchange and the U.S. CME Group. Two events were conducted to introduce the concept of price risk mitigation to over 50 leading private sector representatives in November. During December, additional events were held to engage GOU representatives and the press. A preliminary futures product was also developed for Ukraine, for finalization with stakeholders during early 2012.
• AgroInvest submitted a request to proceed with the agreed agricultural policy support and capacity building grant to the Agrarian Markets Development Institute to USAID in mid October 2011. By mid December AgroInvest was informed that the grant would be awarded directly by USAID and a bride subcontract was therefore developed by AgroInvest to run through the first quarter of 2012.
• A survey of banks involved in lending to SMPs was conducted during the quarter in order to identify AgroInvest parnters in this sphere. As a result, three banks were selected for close cooperation (ProCredit bank, Kredobank and Metabank). Memoranda of Understanding and joint Annual Action Plans were developed with these partners. Credit Agricole also expressed strong interest in engaging with the project on specifc pilots, prior to roll-out and further credit product development.
• The AgroInvest owner-financing concept for land sale-purchase was presented to a series of potentially interested banks. Of these, four expressed interest in cooperating with the project on concept implementation, including Raiffeisen Aval and Oschadbank, major Ukrainian private and public sector players  respectively.
• Two AgroInvest SMP Lending Union Task Forces, comprised of the 60 most active credit unions from each of the two national associations of credit unions, were formed during the quarter to act as the primary channels for provision of technical assistance to increasing lending to agricultural SMPs through improved procedures and new credit products. Action plans were developed for 2012. Preliminary capacity building activities were initiated in Cherkassy, Lviv and Kherson oblasts and Crimea.
• Value chain actors were also surveyed in order to identify partners for agri-credit initiatives in cooperation with financial institutions and SMPs. Agrobonus, Kiev Atlantic Ukraine and Maisadour were selected as the leading national agri-input and feed suppliers and major dairy producer Milkiland has also been engaged as an interested and dynamic value chain partner for SMP credit product development. Memoranda and joint action plans were developed for 2012.
• The Strategy for Implementing Agriculture Producer Organizations’ Capacity Building Program was approved by USAID and implementation initiated. Implementation involved the conduct of a second phase of three training events on investment and development business planning for producer organizations in the selected target regions of Crimea, Vynnytsya and Dnipropetrovsk. A total of 63 representatives from 28 producer organizations attended. Twenty-six business plan concepts were developed by these organizations and a supporting small grants program was simultaneously developed by project experts.
• The Strategic Plan for Developing the Agriculture Produce Market Infrastructure was approved by USAID and implementation initiated. At the local level this involved engagement of PPP partners in three Crimean villages and establishment of a preliminary agreement for the development of retail farmers markets. At the regional level, this involved supporting oblast market development initiatives in Rivne and Kherson and organizing SMP organization both as suppliers and future co-managers.
• During October, three project supported local cold chain developers from sourthern and western Ukraine in attending the USAID RCI and Chemonics FARMA project organized training in post-harvest handling in Sarajevo, Bosnia. Training was conducted by leading US university UC Davis. Trainees have returned to lead project-supported post-harvest and cold chain initiatives in target regions.
• Policy support to producer organizations focused on working with the Association of Agricultural Cooperatives and inter-ministerial working groups to develop legislative amendments to existing cooperatives and tax legislation in order to facilitate registration and operation of agricultural service cooperatives.

The purpose of AgroInvest is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest will achieve this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Environment
  Task 1-a: Accelerate Market Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Sustainable Access to Financial Services for SMPs Provided
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project, extending to an estimated completion date of January 24, 2016. The scope of this project encompasses the following US Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

In the months of July, August and September 2011, the project team continued technical implementation activities in the project focus areas and completed technical and administrative start-up activities that included project accreditation, recruitment of local staff, re-location to permanent project office space, procurement and installation of office equipment and furniture. Key activities and accomplishments during this period included:

• The AgroInvest Strategic Policy Priority Needs Paper was finalized and approved  by USAID (Component 1, Task A)
• In a meeting with the Chairman of the Verkhovna Rada’s Committee for Agrarian Policy and Land, AgroInvest provided concrete recommendations to improve the draft Law on Land Market.
• An innovative approach to “Financing and Stabilizing Ukraine’s Emerging Land Market” was developed by AgroInvest to provide an alternative to bring stability and provide financing for the emerging land market in Ukraine.
• The Strategy for the Land Rights Public Education and Outreach Campaign was finalized and approved by USAID (Component 1, Task C).
• The Program for Delivering Sustainable Legal Land Rights Services was completed and approved by USAID (Component 1, Task C).
• The Small and Medium-Sized Producer Access to Finance Strategy and Action Plan was submitted for USAID approval (Component 2).
• To facilitate SMP financing through credit unions, and linkages between SMPs and markets, the project signed two Memoranda of Understanding (MoU) with leading national credit union associations: MoU with the National Association of Credit Unions (UNASCU) was signed on September 22, 2011 and MoU with the All-Ukrainian Association of Credit Unions (VAKS) and Deposit Guarantee Program (PZV) – on September 23, 2011.
• The Strategy for Implementing Agriculture Producer Organizations’ Capacity Building Program was finalized and submitted to USAID (Component 3, Task A).
• The Strategic Plan for Developing the Agriculture Produce Market Infrastructure was finalized and submitted to USAID (Component 3, Task B).
• Based on project assessments, the Crimea, Vinnitsa and Dnipropetrovsk regions were selected as AgroInvest focus geographic areas.
• On July 11-15, 2011, the project conducted a team building and Year 2 work planning workshop. As a result, the project finalized and submitted for approval the Year 2 Work Plan and updated PMP.
• The Project completed all registration procedures with the government and received accreditation from the Ministry of Economic Development and Trade on July 26, 2011.
• AgroInvest project team moved to its permanent office facilities at 4, Volodymyrska Street on August 19, 2011.
• On September 26, 2011 the project opened an office in Simferopil, Autonomous Republic of Crimea.
• AgroInvest developed and launched the bilingual Project web-site: www.agroinvest.org.ua

The purpose of AgroInvest is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest is achieving this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Environment
  Task 1-a: Accelerate Market Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Sustainable Access to Financial Services for SMPs Provided
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project, extending to an estimated completion date of January 24, 2016. The scope of this project encompasses the following U.S. Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

In October-December 2012, the AgroInvest project team continued technical implementation activities in the project focus areas. Key activities and accomplishments during this period included the following:

• Finalized and submitted LGAF reports to the World Bank for review prior to their official submission of the report to the GoU and presented for public discussion.
• Announced competition for the second round of grants to industry associations for capacity building and advocacy activities.
• Scaled up the Legal Land Rights Services Program to help citizens understand and protect their land rights. The program is operational at the national level (through the Land Rights Resource Center and Web-portal project) and in eight oblasts of Ukraine (through grant agreements with three providers of secondary legal land rights services).
• Launched the Land Rights Public Education and Outreach Campaign.
• Completed the field phase of the Baseline Survey on Land Rights Awareness, Small- and Medium-scale Agricultural Producers Access to Finance, and Agricultural Market Infrastructure. The analytical report will be ready in January 2013 followed by a wide discussion of the findings through a series of roundtables.
• Developed the comprehensive “Market Survey on the Current Status of Agrilending in Ukraine” and presented the Market Survey results to AgroInvest partner banks as a meaningful platform for strategic agrilending expansion.
• Completed the multi-session training program on agrilending for credit union specialists. This program trained 156 specialists to begin conducting trainings on agrilending practices to their colleagues and SMPs.
• Developed and introduced a number of instruments to enhance the quality of lending to SMPs by credit unions, namely:
  • Individual agriculture producer creditworthiness assessment tools;
  • A financial-and-mathematical model for calculating loan interest rates;
  • Instruments to improve the quality of ag-lending loan portfolios of credit unions; and
  • Web-tools for SMPs’ to increase their awareness of, and access to, obtaining financing through credit unions.
• Presented Owner-Financing Mechanism to two leading Ukrainian banks as well as the Project’s established partner banks, and received their commitment to implement the mechanism when the moratorium on the sale of agricultural land is lifted.
• In collaboration with Ms. Horyna, a Member of the Verkhovna Rada (Parliament) of Ukraine, contributed to the adoption of law #10068 “On Amendments to the Tax Code of Ukraine (stimulation of the development of agriculture cooperation,” by the Verkhovna Rada, which was signed into law by the President of Ukraine.
• With the support of AgroInvest, the Verkhovna Rada passed the law #11221 “On amending the Law of Ukraine ‘On Agriculture Cooperation'” on November 20, 2012. This law is expected to be signed by the President of Ukraine in January 2013.
• At the request of the Ministry of Agrarian Policy and Food, the Project executed an analysis of, and proposed recommendations to, the draft guidelines on accounting operations of agriculture servicing cooperatives.
• Completed the feasibility study for the development of Shelen wholesale agriculture market in Rivne oblast.
• Completed phase 1 of the feasibility study for developing a market in Hola Prystan raion, Kherson Oblast. The study focused on the production and marketing of agricultural produce in the market catchment area and proposals on the market facilities structure were prepared.
• Completed Phase 1 of the feasibility studies for developing two wholesale/retail agriculture markets in the Crimea. As a part of phase 1, the project conducted marketing studies and developed proposals on the structures of the facilities in Dobre village, Simferopol raion, and Zuya town, Bilohorsk raion.
• Selected firms on a competitive basis to conduct feasibility studies for (i) the renovation of the milk processing facility of the agriculture servicing cooperative, The Dairy Dnister, and (ii) the development of a slaughterhouse / facility in Bilozirka raion, Kherson oblast.

The purpose of the AgroInvest project is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest is achieving this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Policy Environment
  Task 1-a: Accelerate Market-Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Provide Sustainable Access to Financial Services for SMPs
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five year project with an estimated completion date of January 24, 2016. The scope of this project encompasses the following U.S. Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

From January to March 2015, the AgroInvest project team marked the following key activities and accomplishments:

• Commenced the activities of the Analytical and Coordination Platform for agriculture sector industry associations
• Selected experts and initiated activities of an analytical team in the Ministry of Agrarian Policy and Food of Ukraine (MAPF) to build the capacity of the Ministry to analyze policy options and prepare legislation
• Initiated competitive selection of a subcontractor to conduct a study on responsible investments in the agriculture sector
• At the request of the MAPF, supported the activities of working groups and became increasingly involved in the ongoing development process of the Comprehensive Strategy for Agriculture and Rural Development in Ukraine for the period 2015 to 2020, a strategy paper being prepared jointly by the Ministry and the European Commission
• Assisted in organizing and participated in the U.S.-Ukrainian Agrarian Congress on March 24 and 25, 2015 in Washington, D.C.
• Conducted a study tour for representatives of industry associations and government agencies to the Czech Republic and Poland to learn about the experiences of select EU countries in government regulation of agricultural and food markets and the role of self-regulating organizations
• Finalized a report on government regulation of agricultural and food markets and the role of self-regulating organizations in select EU countries
• Conducted high-profile capacity building trainings on advocacy activities for national and regional agriculture sector industry associations
• Presented the USAID AgroInvest Land Rights Public Education and Outreach Campaign at the 2015 World Bank Land and Poverty Conference in Washington, D.C.
• Continued to support land reform and training of legal land rights service providers through the Land Rights Resource Center and Web-Portal
• Continued implementation of the Ten Steps to Combat Corruption in Land Relations Program
• Initiated a comprehensive analysis of local administrations’ experience in providing regional subsidies for SMPs
• Launched a training program to familiarize farmers with new lending opportunities for potential borrowers of partner credit unions
• Supported the two national-level associations of credit unions in Ukraine in advocating policy changes aimed at improving access to credit for SMPs, conducting training seminars to share best practices in lending to SMPs, and conducting a training of credit union internal auditors and on-site internal audit sessions
• Conducted four agri-technological trainings (two for financial officers of partner financial institutions to increase their ability to issue and monitor loans to SMPs and two for credit union members)
• Advocated for the passage of the draft law of Ukraine #2052 “On Amending the Tax Code of Ukraine (regarding Improving the Value-Added Taxation of Agriculture Produce Produced by Smallholdings and Marketed through Agriculture Service Cooperatives),” which was initiated and developed with technical assistance from AgroInvest; the draft law was registered in the Parliament of Ukraine on February 6, 2015.
• Advocated for the passage of the draft law of Ukraine #1599 “On Amending Selected Laws of Ukraine on Stimulating Establishment and Operations of Family Farms,” which was initiated and developed with technical assistance from AgroInvest; the draft law passed first reading on March 4, 2015.
• Developed the draft law of Ukraine “On Local Agri-Food Markets” jointly with the Ministry of Agrarian Policy and Food and presented it for public discussion
• Conducted the first phase of a training program to develop a network of consultants for small and medium-sized enterprises on implementing and ensuring high performance of certification and food safety systems based on Hazard Analysis and Critical Control Points (HACCP) and Global GAP standards
• Published two guides on bookkeeping for agriculture service cooperatives to help regulate relationships between cooperatives and their members who supply raw milk for processing and receive proceeds from selling finished products

The purpose of the AgroInvest project is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest is achieving this objective by supporting a stable, market-oriented agricultural policy environment; stimulating access to financial services for small and medium producers (SMPs); and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components that are refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Policy Environment
  Task 1-a: Accelerate Market-Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Provide Sustainable Access to Financial Services for SMPs
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project with an estimated completion date of January 24, 2016. The scope of this project encompasses the following U.S. Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

QUARTERLY HIGHLIGHTS

From April through June 2015, the AgroInvest project team marked the following key activities and accomplishments:

• Provided assistance to the Ministry of Agrarian Policy and Food of Ukraine (MAPF) in finalizing the Comprehensive Strategy for Agriculture and Rural Development in Ukraine for 2015-2020, which is being jointly developed by the Ministry and the European Commission.
• Selected a subcontractor and commenced implementation of the study on social partnerships between agricultural land lessees and rural communities
• Developed seven draft laws that deal with land issues in the agriculture sector and presented them for public discussion.
• Prepared the annual update to the project’s Strategic Policy Priority Needs Paper.
• At the request of the MAPF, initiated competitive selection of a subcontractor to conduct a national survey of land owners, farming enterprises, and the population at large on land reform in the Ukrainian agriculture sector.
• Organized a presentation, “Pig Production Without Antibiotics: How Much It Costs,” during the 7th International Profitable Pig Production Congress in Kyiv.
• Publicly presented the report on government regulation of agricultural and food markets and the role of self-regulating organizations in selected EU countries, and developed a draft law “On the Framework of Self-Regulation in the Agrarian Sector of the Economy of Ukraine.”
• Held a two-day agricultural policy training for students and young professionals in conjunction with the Interns’ League.
• Continued support of the Analytical and Coordination Platform for agriculture sector industry associations.
• Continued to support land reform and training of legal land rights service providers through the Land Rights Resource Center and Web-Portal.
• Conducted a comprehensive analysis of local administrations’ experience in providing regional subsidies for SMPs in three Oblasts, and held subsequent discussions of the results with those administrations’ management.
• Conducted 15 training sessions in Lviv, Kherson, and Kharkiv Oblasts to familiarize 366 farmers with new lending opportunities for potential borrowers of the DCA-partner credit unions.
• Conducted 15 innovative training events on closed value chain rabbit breeding for 502 SMPs that are members of partner credit unions.
• Organized and conducted a study tour that sent seven high-ranking Ukrainian officials to Brussels to meet the European Network of Credit Unions, the Vice President of the European Parliament, and the EU Commission and share critical knowledge on the strategic development of Ukrainian credit unions and the harmonization of Ukrainian legislation with EU standards.
• Conducted six classroom and field-based Oblasttraining sessions (two per Oblast) for farmers in support of the AgroInvest and DuPont-Pioneer Partnership Program in Kherson, Lviv, and Kharkiv Oblasts.
• Launched a series of agro-technological training for members of Kherson partner credit unions to increase the effectiveness of vegetable production on their farms and to leverage their creditworthiness.
• Completed the implementation of a training course for 24 consultants to provide small and medium-sized enterprises with information and applicable suggestions on the introduction and support of HACCP and Global GAP food safety systems.
• Developed action plans and prepared the documentation required for HACCP and Global GAP certification for six partner producer organizations.
• Jointly with the USAID Regional Economic Growth Project and the Centre for the Promotion of Imports from Developing Countries of the Ministry of Foreign Affairs of the Netherlands, AgroInvest conducted a two-day training in Kyiv on EU market developments; export opportunities; product quality; and food safety and certifications for fresh and processed fruits and vegetables. The training was targeted at producers, manufacturers, and exporters of fresh and/or processed fruits and vegetables. It was attended by representatives from Ukraine, Belarus, Moldova, Georgia, Armenia, and Azerbaijan.

The purpose of AgroInvest is to provide technical assistance to accelerate and broaden economic recovery in Ukraine and increase the country’s contribution to global food security efforts. AgroInvest is achieving this objective by supporting a stable, market-oriented agricultural policy environment, stimulating access to financial services for small and medium producers (SMPs), and facilitating a more effective market infrastructure for SMPs.

The scope of work identifies three main components, refined into six tasks, as follows:

• Component 1: Support a Stable, Market-Oriented Policy Environment
  Task 1-a: Accelerate Market-Oriented Reforms
  Task 1-b: Strengthen Industry Associations
  Task 1-c: Provide Public Education for Land Rights
• Component 2: Stimulate Access to Finance
  Task 2-a: Provide Sustainable Access to Financial Services for SMPs
• Component 3: Facilitate Market Infrastructure for Small and Medium Producers
  Task 3-a: Producer Organization Development
  Task 3-b: Develop Wholesale Markets and Other Market Infrastructure

AgroInvest is a five-year project with an estimated completion date of January 24, 2016. The scope of this project encompasses the following U.S. Foreign Assistance Framework Program Areas: 4.2 Trade and Investment, 4.5 Agriculture, 4.6 Private Sector Competitiveness, and 4.7 Economic Opportunity.

From October to December 2014, the political and social situation in Ukraine continued to stabilize. However, the country is still going through a period of economic, political, and social distress that had consequences for AgroInvest’s technical and administrative activities. A large part of Donetsk and Luhansk oblasts experienced fighting between armed groups, and the Autonomous Republic of Crimea remained a self-declared independent territory. Parliamentary elections were held in October and the new Cabinet was approved by the Parliament in December 2014. These changes in the GOU have also brought with them changes in the Ministry of Agrarian Policy and Food. In December 2014, Oleksiy Pavelenko was named as Minister of Agrarian Policy and Food.

The impact of the ongoing situation in Ukraine on AgroInvest activities is discussed throughout this quarterly report.

QUARTERLY HIGHLIGHTS

From October to December 2014, the AgroInvest project team marked the following key activities and accomplishments:

• Prepared analysis and comments to the agricultural sector part of the draft Action Program of the Cabinet of Ministers for 2015 and submitted these documents to the Committee of Verkhovna Rada of Ukraine on Agriculture Policy and Land Issues;
• Provided assistance to the Ministry of Agrarian Policy and Food (MAPF) in developing an Action Plan to implement the Cabinet of Ministers’ Action Program for 2015 and parliamentary Coalition Agreement for 2015-2016;
• Ensured submission and registration in the Verkhovna Rada of a draft law to simplify crop rotation requirements for farmers;
• Facilitated registration of two draft laws aimed at creating conditions for transforming subsidiary household farms into commercial family farms in the Verkhovna Rada of Ukraine;
• Prepared and disseminated a report, “Recommendations on Improving Ukraine’s Pig Industry Regulations”;
• Prepared a draft manual, “The History of Ukrainian Land Legislation for Judges,” and shared it for review and comments with the National School of Judges and the Canadian Department of Foreign Affairs, Trade, and Development-funded Judicial Education for Economic Growth (JEEG) project;
• Printed and distributed guidelines for land-owners on concluding and implementing lease agreements for agricultural land;
• Made a public presentation and distributed a report with an impact analysis of the Deep and Comprehensive Free Trade Areas (DCFTAs) signed between the EU and other countries, and recommendations for implementation of the DCFTA between Ukraine and the EU in the agricultural sector;
• Prepared an analytical paper identifying Ukrainian agriculture and food products that have the greatest export potential in the short term and proposing policy interventions to help realize this potential;
• Finalized pre-award determination and commenced implementation of grant-based capacity building programs with five regional agricultural industry associations;
• Commenced participation of project experts in working groups to design a Comprehensive Strategy for Agriculture and Rural Development in Ukraine for 2015 – 2020 jointly with the MAPF and the European Commission;
• Launched the official USAID Development Credit Authority (DCA) Loan Portfolio Guarantee (LPG) program between USAID and five AgroInvest partner credit unions. AgroInvest also supported the process of the credit unions paying their required DCA LPG origination fees. As such, the credit unions can now begin placing loans under DCA coverage;
• Conducted a study tour to Poland for representatives of the Ukrainian government and national associations of credit unions, providing an opportunity for knowledge sharing and exposing participants to the Polish credit unions’ successful experience transitioning to the regulatory requirements/framework of the European Union;
• Conducted five agro-technological trainings for loan officers of two partner banks and seven credit unions;
• Accomplished four internal audits of partner credit unions;
• Conducted four practical agro-technological training sessions focused on innovations in production technologies for various vegetable crops. As a part of the training, the project promoted agrilending opportunities available to those employing new technologies;
• Launched production facilities for four agricultural service cooperatives which had received grant support from AgroInvest;
• Prepared and printed two manuals of methodological recommendations on implementing HACCP-based food safety systems for small and medium-sized enterprises’ storing, handling, and processing of raw and processed food products;
• Developed and prepared for publication methodological guidelines on accounting standards for agricultural service cooperatives;
• Organized and successfully conducted the “European and Ukrainian Fruit and Vegetable Markets: Challenges and Prospects” conference at Shuvar Wholesale Market in Lviv. USAID Mission Director Jed Barton and various local and national members of the GOU participated in the conference.
• On December 23, 2014, two draft laws developed by AgroInvest were registered in the Verkhovna Rada of Ukraine:
  • Draft Law of Ukraine No. 1599 “On Amending Selected Laws of Ukraine with Regard to Stimulating Establishment and Operations of Family Farms”;
  • Draft Law of Ukraine No. 1600 “On Amending the Tax Code (with Regard to Stimulating Establishment and Operations of Family Farms).”

These laws deal with the recognition of family farms as legal entities, which allows them to take advantage of tax benefits.