QUARTERLY REPORT: OCTOBER - DECEMBER 2016

QUARTERLY REPORT: OCTOBER - DECEMBER 2016 USAID’S AVANSA AGRIKULTURA PROJECT

January 23, 2017 This document was produced for review by the United States Agency for International Development. It was prepared by Cardno Emerging Markets USA, Ltd. (Cardno) for USAID’s Avansa Agrikultura Project, contract number AID-472-C-15-00001.

QUARTERLY REPORT: OCTOBER – DECEMBER 2016 USAID’S AVANSA AGRIKULTURA PROJECT Submitted by: Cardno Emerging Markets USA, Ltd. Submitted to: USAID/Timor-Leste Contract No.: AID-472-C-15-00001

DISCLAIMER

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.

USAID’s Avansa Agrikultura Project

Quarterly Report: October – December 2016 Page i

Table of Contents ACRONYMS............................................................................................................................................................................. 1 1. BACKGROUND.................................................................................................................................................................. 2 2. HIGHLIGHTS THIS REPORTING PERIOD ................................................................................................................. 3

2.1. SUB-PURPOSE 1 – INCREASED PRODUCTIVITY OF THE HORTICULTURE VALUE CHAIN .........................................3 2.2. SUB-PURPOSE 2 – INCREASED ABILITY TO ENGAGE IN ECONOMIC ACTIVITIES......................................................8

4. COLLABORATION WITH USAID, OTHER DONOR PROJECTS, GOVERNMENT OF TIMOR-LESTE AND THE PRIVATE SECTOR........................................................................................................................................... 13 5. ENVIRONMENTAL COMPLIANCE ............................................................................................................................. 14 6. COMMUNICATIONS AND MEDIA OUTPUTS ......................................................................................................... 15 7. KEY ACTIVITIES PLANNED FOR NEXT QUARTER ............................................................................................ 15 ANNEX 1. PROGRESS AGAINST PMEP RESULTS.................................................................................................. 17


Quarterly Report: October – December 2016 Page 1

Acronyms AAS Annual Agribusiness Survey ANL Australian National Line BEO Bureau Environment Officer CCA Climate Change Adaptation CLA Collaboration, Learning and Adaptation COP Chief of Party DAA Data Entry Administrative Assistants DCOP Deputy Chief of Party DIV Development Innovation Ventures DQA Data Quality Assessment EMMP Environmental Mitigation and Monitoring Program FAO Food and Agriculture Organization FTF Feed the Future GIS Geographic Information Mapping GOTL Government of Timor-Leste HO Home Office HQ Headquarters HWG Horticulture Working Group IEE Initial Environmental Examination ILO International Labor Organization IP Implementing Partner M&E Monitoring and Evaluation MCIE Ministry of Commerce, Industry and the Environment MDF Market Development Facility MOE Ministry of Education MOH Ministry of Health MOU Memorandum of Understanding MSC Most Significant Change NRM Natural Resource Management OM Outcome Mapping PAD Project Activities Database PAR FARM Participatory Farmers Adoption of Results Monitoring PERSUAP Pesticide Evaluation Report and Safer Use Action Plan PMEP Performance Monitoring and Evaluation Plan PP Project Partners PRIPS Performance Indicator Reference Sheets REO Regional Environment Officer RFP Request for Proposals SLIM Stakeholders Leverage, Investment Monitoring and Analysis SMAST Singapore Market Access Study Trip SOW Scope of Work STTA Short Term Technical Assistant THWG Technical Horticulture Working Group TOC Theory of Change TOT Training of Trainers TRM Tuba Rai Metin WEAI Women’s Empowerment Agricultural Index ZOI Zone of Influence



1. Background USAID’s Avansa Agrikultura Project is a horticulture value chain activity aimed at addressing the key challenges of rural poverty, natural resource degradation, food insecurity, and under-nutrition. The value chain approach will be applied in achieving increased productivity along key horticulture value chains that include vegetables, fruits, and legumes. Through the promotion of sustainable production practices, increased functionality of farmer groups and associations, improved market linkages, and increased availability and access to quality agricultural inputs and services, including access to finance, the project will aim to stimulate and support increased economic activity and growth in targeted rural communities and municipalities. Sustainability of these interventions will be supported by work to maintain sound policies and enabling environments relevant to the sector, as well as efforts to increase resilience to climate change and improve natural resource management as it relates to farm systems.

The overall purpose of the USAID’s Avansa Agrikultura Project is sustainable and inclusive economic growth accelerated in the agriculture sector. At the end of this project, it is anticipated that about 33,000 people in 250 communities will be earning higher incomes, showing improved nutrition practices, farming sustainably and managing their economic assets more effectively. This will be achieved through two project Sub-Purposes and a total of eight corresponding outputs.

Sub-Purpose 1 – Increased Productivity of the Horticulture Value Chain Outputs:

1. Policy and Enabling Environment Maintained or Improved 2. Climate Change Resilience Increased through Natural Resource Management

3. Sustainable Production Practices Adopted at the Farm Level

4. Capacity of Farmers’ Groups and Associations Strengthened

5. Improved Market Linkages 6. Availability of Quality Agricultural Inputs and Services Increased

Sub-Purpose 2 – Increased Ability of Timorese Citizens to Engage in Economic Activities Outputs:

7. Improved Nutrition and Sanitation Practices 8. Improved Skills to Utilize Productive Assets for Economic Activity



2. Highlights this Reporting Period Significant activities were undertaken in the period of October through December 2016. The following provides a summary.

2.1. Sub-Purpose 1 – Increased Productivity of the Horticulture Value Chain Output 1: Policy and Enabling Environment

Key Activities: The project has continued to coordinate with MAF to build support for reforms in the areas of SPS, chemical usage, fertilizer, organic versus inorganic produce, and the development of a National Horticulture Policy.

Progress continued in relation to SPS included a one week visit by Dr. Hariyadi, STTA for Policy Development, who met with relevant stakeholders including the Coordinator of Authority for Food Inspection from the Cabinet of the Prime Minister’s Office, Asian Development Bank, National Director of Quarantine and Biosecurity. Governance Advisor, Jose da Costa, continued this work by presenting a concept paper entitled “Towards Implementation of SPS: Necessary Steps for Timor-Leste”, at a workshop organized by TradeInvest (MECAE), in cooperation with DFAT’S MDF project. Discussions with relevant government ministers have ensued concerning a potential study tour for SPS and single customs window. The Timorese Ambassador to Cambodia, in particular, has been involved in preliminary discussions and welcomes the idea. These discussions are on-going.

STTA Richard Edwards arrived in country to develop a report analysing organic versus inorganic produce in Timor-Leste. He also met with Timor Global, National Director of Agribusiness Mr. Fernando Egidio, National Director of Agriculture Horticulture and Extension Mr. Amaro Ximenes, Chief Executive of HASATL Mr. Gil Boavida, CCT Representative Mr. David Boyrce, and Timorganic Owner Jurgen Glemborzki to discuss economic benefits of organic versus inorganic produce in Timor-Leste. The final report is currently being finalized by Richard Edwards and will be submitted once completed.

As the Secretariat for the Horticulture Technical Working Group, the project assisted by facilitating the 11th meeting on October 28, 2016 at the project’s office. MAF was unable to present on the implementation progress of the Horticulture Belt Initiative, therefore only one presentation was given by STTA Dr. Hariyadi “Towards SPS Implementation: Necessary Steps for Timor-Leste”. The next meeting is tentatively scheduled for February 2017.

An Annual Agribusiness and Household Survey was conducted to gather information across a variety of areas from costs and access to inputs, access to markets, and impacts of the current policy environment. The Survey collected data from over 480 beneficiaries about what they grow, what inputs they use, where they obtain their inputs, where they sell their products as well as nutritional questions. The survey also collected evidence for the project’s Performance Indicators, ranging across all eight activities (outputs). The data collection was completed by UNPAZ and was presented to the Project in October. The final report is being finalized and is expected to be presented to USAID in the upcoming period. There has been no progress on the joint FAO activity to develop a draft pesticide law and manual. FAO is still seeking a national legal consultant counterpart for the internationally recruited consultant. FAO TL has identified one qualified candidate but UN employment procedures are still underway.

The 2nd Project Steering Committee Meeting was organized and attended by representatives from MAF, MCIE, MoE and was chaired by USAID. USAID’s Avansa Agrikultura Project Chief of Party Dina Karic provided an update to the attendees about the Year 3 workplan.



Representatives from MAF and MICE requested that the Project provide assistance related to the horticulture belt project and to assist with increasing market linkages between farmers and supermarkets. The next meeting is tentatively scheduled for April 2017.

Output 2: Climate Change Resilience Increased Through Natural Resource Management

Key Activities: This past quarter saw a joining of economic generating activities and natural resource management. Many farmers are reluctant to undertake NRM activities as they do not see the economic benefit. To address this, the Project has engaged with companies like Timor Global to expand passion fruit tree cultivation in Ermera, whereby compost and 7000 seedlings were distributed to 80 farmers for planting. These trees are key for soil erosion prevention and water conservation, and offer farmers potential income through fruit processing. In particular, female farmers are being engaged to produce syrup from the passion fruit to sell to Timor-Global.

Nurseries established in year two are continuing to increase the number of seedlings produced. FUHAK group in Fatukeru, Ermera have begun distributing rambutan seedlings to farmers, approximately 300 seedlings have been distributed and planted on community and personal land. Farmers are currently seeking a market where they can sell additional rambutan seedlings from their nursery. Rambutan trees not only provide excellent protection against sheet erosion on hillsides but they also provide a very marketable fruit crop that is consumed in cities and rural areas alike. This practice of introducing valuable deep rooted perennial tree crops reduces the risk of disaster from landslides and soil loss.

Six NRM interns have joined the project, three are currently participating with the JICA CBNRM Program, being implemented by RAEBIA Organization in Aileu. Three are working with RAEBIA at the Hera PLUP site in Dili. The goal of the internship is to provide the interns with on-the-job training to increase their skills and understanding of NRM in order for them to continue working as facilitators with the Project or with other donors. A new land survey for NRM activity implementation was completed at Railako Letin, Ermera. A total of 1,020m2 were deemed suitable both in terms of location and land condition. The community in the area is interested in partnering with the Project. The main problem in this area is water shortage during the dry season. A new water source has been selected close to the river to produce seedlings, it is roughly 2km from the community.

NRM Specialist, Cesaltino Lopes, attended the CSA-GLEE Asia conference in Cambodia. The conference was attended by 102 participants from 17 different Asian countries and 29 USAID missions and innovative practitioners. The purpose of the conference was to build a broader understanding of how to implement smart agriculture as influenced by climate change science in the region and to share and learn from collective experiences in the quest to achieve food security and meet environmental goals.

In terms of NRM grants and subcontracts: RAEBIA continued to implement their grant with finalising 420 meters of fencing around the farm areas and planting macuna beans, maize, and other legumes to increase soil fertility. TRM planted bamboo in Soro, Ainaro with 1700 saplings distributed to 33 communities at Kasa Village. The group continues to prepare bamboo saplings for planting in February 2017. NGO Santalum begun conducting surveys at Duyung Village, Dill; Cotolau Village, Aileu; Atabae Village, Bobonaro; Lihu Village, Ermera; and Edi Village, Ainaro. In Cotolau, Aileu 50 farmers prepared a nursery and filled 5000 polybags for seedling production including cloves, tonna surrene, mahogany, and candlenut. RAEBIA held a PLUP workshop with 20 committee members in Hera to identify present land use map and identify village resources.



Output 3: Sustainable Production Practices Adopted at Farm Level

Key Activities: USAID’s Avansa Agrikultura Project staff have continued to build relationships with government representatives in the municipalities to improve collaboration. Meetings were held in Bobonaro with the Coordinator for Extension workers and the Head of Department for Agrikultura-Hortikultura, in Ainaro with the Chief of Agriculture Department, with TOMAK’s Regional Manager in Maliana to discuss problems and issues facing farmers and develop solutions accordingly.

The project has identified 43 new farmers groups totalling 547 individuals. The groups are distributed across the projects targeted areas as follows: three in Aileu, eighteen in Ainaro, eleven in Bobonaro, nine in Ermera, and two in Dili.

The project has advanced sustainable production practices in a number of areas through technical assistance to ensure farmers are utilizing new technologies:

Seedlings production and effective transplant methods have continued to assist farmers with combating issues regarding bad seeds. The following were transplanted: in Hatu-Udo Demo plot: cabbage 440 seedlings, Chinese cabbage 160 seedlings, pak choy 500 seedlings, and eggplant 100 seedlings. In Aileu, Habelar Fini group received assistance with rebuilding their nursery.

In Hera seed bed preparations continued for the Lekiluak Farmer Group combined with drip irrigation installation. Fifteen beds were finalized covering 170.2 m2 with drip irrigation. Furthermore, water spinach and kanok were moved into three beds with drip irrigation, an additional four beds were transplanted which do not have drip irrigation. A fertigation system was installed, however water issues have arisen resulting in trouble getting water out of the system and into the field. Trans block seedlings of Idola Tomato (24 plants), Lentana Tomato (41 plants), and Pak Choy (31 plants) were finalized and 25.6 kilograms of Okra was harvested by the Lekiluak Farmer Group.

In Aileu project staff installed plastic mulch in Masqise demo plot, and re-installed drip irrigation in Hisik Kosar demo plot. Additionally, a new nursey was built in collaboration with new farmers group Femi Kultura (10 individuals, 9 women and 1 man) in Dudato.

The project also undertook a number of activities around training and extension: IPM Training: Dr. Antara hosted trainings in Aileu (28 participants), Ainaro (31

participants), Ermera (36 participants), Bobonaro (35 participants) and Dili (20 participants) which were attended by farmers, MAF extension workers and input suppliers.

Crop Maintenance: In Bobonaro 14 participants received melon maintenance training, in Aileu 39 participants received melon, broccoli, and cauliflower maintenance training, and in Ermera 13 participants received strawberry maintenance training.

TOT Activities: New MCs and interns were trained on mechanization, drip irrigation packages and participated in all of the above trainings.

Output 4: Capacity of Farmers Groups/Associations Strengthened

Key Activities: The project has continued to make significant advancements in supporting and establishing farmers groups. Farmers are often encouraged by various governmental and private sector organizations to forms groups, however they are not provided instructions or training on how to form and maintain a group. Sixteen new groups were identified for



engagement during year three of the project and Business Group Formation trainings are being organized. In Ainaro three farmer groups in Soro and Soru Kraik have already attended the two-day trainings. Additional providers are needed to implement more of these trainings and the team is currently reviewing an application for implementing Business Management Trainings. Moving into year three of the project the need to scale up trainings to reach more farmers is pertinent, by outsourcing trainings to local providers the project will be able to reach more beneficiaries while supporting local providers for long-term sustainability.

This quarter the project conducted socialization events in Ainaro, Bobonaro, and Ermera to determine interest in establishing municipal level horticulture associations. Preliminary meetings were held with MAF and MCIE ministers in November with follow up meetings in December with MAF Directors in Ainaro and Bobonaro. Both regions agree that municipal associations need to be established.

Following the visit of STTA Anthony Sinclair (Access to Rural Finance) and Cassia D’Aquino (Financial Literacy) Output 4, in collaboration with Output 8, are seeking a provider to assist with implementing basic Financial Literacy training and Book Keeping training for rural farmers. One of the most pressing needs identified as a result of training needs assessments is the need for financial literacy among farmers and rural entrepreneurs. Many would-be rural entrepreneurs are deterred from entering into business transactions because of a lack of basic math skills. Group members are often embarrassed to ask for this assistance but recognize their need for math and business knowledge. Collaboration with banks and other financial intuitions is necessary in order for rural farmers to access the finances needed, the team has facilitated meetings with these financial institutions to discuss agriculture loans and options to make them affordable and realistic for both the lender and the borrower. An expert on Agriculture Loan Development will be in country next quarter to assist further with this. With assistance from the Project, seven new entrepreneurs obtained their business license registration through SERVE, all seven are also in the process of applying for small-scale processing grants from the Project. Five were approved and are in the final negotiation phase: Tokenela Unip Lda.: Candlenut, Gloham Unip Lda.: Compost Making, Supolaim Unip Lda.: Virgin Coconut Oil Production, Faramfat Unip Lda.: seedling nursery and Putleo Unip Lda.: Jams, Banana Chips, Casava Chips etc. During the project launch in 2015 MAF Minister Estanislau da Silva spoke of collaboration with the project on the horticulture belt initiative, this was again raised during the 2nd Project Steering Committee, requesting further assistance from the project on this initiative by MAF. In November, this initiative was official launched by MAF in Gleno, Ermera. Project staff attended and were provided the opportunity to share information concerning project activities including, market linkage initiatives, CSA technology implemented at the demo plot, NRM and Nutrition activities.

Output 5: Improved Market Linkages

Key Activities: In this quarter, a major accomplishment was the MOU signing the Project facilitated between 29 farmer groups in Aileu and four supermarkets from Dili. The MOU event was attended by the Minister for Commerce, Industry and the Environment, Aileu Municipality Administrator, Aileu Municipality MAF Director and Aileu Municipality National Police Commander. This is the largest single event linking supermarkets to farmers for the project, the team is continuing with connecting smaller individual groups with supermarkets in other municipalities. In Atabae, W-Four now has a trial MOU with seven farmers to determine product availability.



Following the preliminary approval of funding to AHMUSTAL (formerly AHDISTAL) the team is assisting the managing committee with finalizing their budget specifications so that they may receive a grant. Cai Mali Loki a commodity buyer exporting to Indonesia approached the Project and requested support to connect to commodity growers. The Project connected this commodity buyer to farmers in Hatu-Udo. At the meeting, Cai Mali Loki informed the farmers of the types of dried commodities they require and the amounts needed. Farmers requested training on drying all the commodities and the Project will assist with organizing trainings. Hatu-Udo in Ainaro is often neglected by the markets due to access issues and lack of knowledge on product availability. Through the Project, KMANEK supermarket was connected to 16 pineapple farmers this past quarter for a meet and greet session during which the supermarket expressed their needs in terms of quality, quantity and pricings. Issues currently facing the farmers were also raised such as their need for protective gloves while harvesting. At the end of the session KMANEK purchased approximately 90kg and it was reported to have sold out within two days. KMANEK will continue purchasing from the farmers for the local market in Dili. As a middle man trader, Dili Mart is working with the project to determine other supermarkets in Dili for vegetable supply. Mei Mart supermarket held talks with project staff and Dili Mart to determine their need for locally sourced vegetables. Mei Mart agreed to conduct internal meetings to determine whether they would source vegetables through Dili Mart or another trader. Contract renegotiations are being done in Gleno, Ermera between farmer groups, established by DAC, and Dili Mart in collaboration with MAF representatives in the area. An update meeting is tentatively scheduled for end of January to discuss the draft MOU concepts and additional agribusiness issues.

Output 6: Function of Private Sector Input Supply Improved Key Activities: The Project continues a number of activities to strengthen the private sector input supply system in Timor-Leste. In October the team facilitated a trial “Farmer Field Day” in Gleno, Ermera which was attended by roughly 200 farmers and representatives from MAF and the National Director of Marketing and Promotion. Six Input Suppliers (Casa Agrikultura, Agi Agrikultura, Vinod Patel, Graca, Leolaek, and Kmanek) attended the event to showcase and sell various products. Other organizations such as HIAM Health, UNPAZ, and ETCI also attended and displayed their agriculture input supplies. The Project is looking into the feasibility of continuing the initiative across Ermera and the Project’s other targeted municipalities. The goal is to expose farmers to inputs so they may increase their usage of safe inputs needed to improve yields.

Accessing inputs outside of Dili remains a challenge. While Farmer Field Days provide an opportunity, farmers need a consistent and reliable supply of agriculture inputs. The project is actively seeking ways to combat this issue by connecting larger suppliers in Dili, such as Vinod Patel and KMANEK, with smaller suppliers in the municipalities. Loa Akhia and Gunilabe in Maliana have expressed interest in a consignment agreement. The project is working to finalize an agreement and move forward with this on a trial basis before expanding to other municipalities. In addition to physical access issues, farmers also have financial access issues



to various inputs such as drip irrigation. The project is in the process of finalizing an agreement with Vinod Patel and Kmanek to trial “drip irrigation packages” on a cost-share basis for farmers.

Accessing seeds still proves to be an issue for many farmers. The project continues to meet with input suppliers to collect information concerning seed varieties, seed quality and pricing in Timor-Leste. Loja Graca Agrikultura has agreed to prepare several types of seeds to be sold through an input agent in Atabae.

2.2. Sub-Purpose 2 – Increased Ability to Engage in Economic Activities Output 7: Improved Nutrition and Sanitation Practices

Key Activities: Following the signing of a Memorandum of Understanding with the Ministry of Education in the last quarter, this quarter the Nutrition Team focused energies on sourcing and building relationships with targeted schools for participation in the upcoming School Garden Competition. Surveys were held in each municipality to determine an appropriate school for each, the schools are required to provide land and water access while the project will provide technical assistance. A minimum of two teachers from each school will attend specific training in January prior to the competition’s launch in February. The schools selected include: Ensino Basico Central in Hatolia, Ermera, and Ensino Basico Central in Hatu- Udo, Ainaro. The additional two schools in Bobonaro and Aileu have not been confirmed by the school directors. Forty-two people from farmer groups obtained food safety training. These are farmers that currently receive support to increase their linkages to farmers who are growing more nutritious food. The Project is worried that most of these farmers are selling most of their products and keeping little for their families. Training was directed to these farmers to explain the importance of food diversity, food safety, and cooking demonstration. Moving into year three, Output 7 is expanding its reach for training to bring knowledge to more farmers. The project is currently seeking providers to assist with implementing these trainings through outsourcing (as mentioned above).

The Project conducted a Nutrition Sensitive Agriculture (NSA) presentation at the World Food Day in Baucau hosted by KONSSANTIL. The Project also participated in a two-day fair supporting the event. The team was on hand to provide brochures to attendees and to answer questions concerning NSA and other Project aspects. For a children’s’ activity, the team demonstrated simple home gardening through the use of “Take Home Garden Boxes”. The children were provided with a box, compost and three varieties of seeds to grow at home.

The Nutrition Team continues to maintain good relations and presence within the National Parliament. This past quarter Nutrition Specialist, Rosaria Martins da Cruz, attended and presented during the National Parliament Seminar on Nutrition and School Gardens. The events were well attended by the President of Parliament, Ministry of Health, Ministry of Social Solidarity. Education, and Agriculture, Middle School Directors and Coordinators, various UN Agencies and other donors such as FAO, UNESCO, and UNICEF. Participation in such events allows potential for greater collaboration between the project, government entities and other NGOs while at the same time showcasing project activities and emerging successes within communities in Timor-Leste.



Output 8: Improved Skills to Utilize Productive Assets for Economic Activity

Key Activities: Following review of indicator progress pertaining to Gender and Youth, the project conducted internal meetings with each Output Leader to determine targeted areas of intervention moving into Year Three. Additionally, research was conducted to discuss challenges facing rural women and ways in which the project was not assisting, or could be assisting better moving forward, in relation to women’s participation in project’s interventions. Recommendations included:

• Increase awareness concerning women’s capabilities to dismiss assumptions that women cannot or will not do ‘heavy lifting’ work. Women should be afforded the same opportunity as men in terms of attending trainings on new technologies (i.e. front-tine tiller and hand-tractor training) versus typical ‘female activities’ (nutrition, gardening etc.)

• Greater interaction with women throughout the whole value chain (female farmers, buyers, input suppliers etc.) to increase trust in the relationship which will encourage the women to be more open concerning issues facing them. This will also assist in determining impact and progress.

• Increased participation to monitor activities throughout Output 1-7 in terms of active female participation and provide assistance with engaging women more during trainings and other hands-on activities.

• Increase interaction with local organizations working on gender issues to leverage partnerships with them as feasible.

Collaboration with TOMAK on various initiatives are continuing, including activities concerning greater inclusion by women and youth throughout the agriculture value chain. This quarter the project participated in TOMAK’s workshop at which the findings of their GESIA (Gender Equality and Social Inclusion Analysis) survey were presented. The event was attended by various organizations include MDF, Alola Foundation, Asia Foundation, and local NGOs from Bobonaro, Viqueque, and Baucau. The purpose of this study is to provide TOMAK with information to design their gender inclusive interventions and provide a platform for sharing across projects.

Collaboration efforts with other projects progressed to determine feasibility for supporting youth activities. In particular, the project approached GIZ to discuss their interest in

Women addressing nutrition while increasing incomes:

Selestina Pinto from Seloi Kraic relies on her own ability to support her children and her ill husband. Eager to learn new faming technology and ways to generate more income she has been actively involved with the Project. Thanks to the Project, Mrs. Pinto is now connected to KMANEK supermarket and is selling higher value produce such as broccoli, cauliflower, and more recently beetroot. Mrs. Pinto stated, “I would like to grow more of these produce because they give a good price”. She joined a Project established saving and loan club, which has enabled her to diversify her income into fisheries. She now has three fish tanks and is waiting for the fish to mature before selling them locally. Mrs. Pinto is already planning how to reinvest her future sales to increase the size of her family garden. Her innovative thinking has placed her in a position to encourage other female headed households to branch out into new business territories using agriculture as a base.



collaboration, namely with co-funding agronomist and mechanical training for approximately 100 young people.

The Project participated in a round-table discussion for Women Entrepreneurs Day. The main purpose of this meeting was to announce the nominations for the first ever Women Entrepreneurs Ambassador for female companies. Ms. Kathleen Goncalves won the nomination. This meeting was attended by several private sector partners, government ministries, Office of the Parliament and Chamber of Commerce representatives. Discussions included the need to expand support for female business, the project highlighted the need to support agri-sector initiatives in accordance with the project’s mandate.

The Year Three Saving and Loan Expansion plan is currently being rolled-out. The Project is collaborating with Mercy Corps on sourcing field agents to monitor additional saving and loans groups and to ensure expansion in this area. USAID’s Avansa Agrikultura Project will co-finance Mercy Corps’ S&L training program, which trains people in adejas to become S&L officers and set up new S&L clubs. The training is scheduled to take place in February 2017.

The Project awarded the design and implementation of the Upcoming Women’s Economic Empowerment Campaign to Ba Futuru. Ba Futuru is currently testing messaging for the campaign with project beneficiaries in Metinaro and Hera before further developing their campaign messaging for review and approval. The aim of this campaign is to increase awareness in women’s roles throughout the value chain and to promote increased activity outside of traditional female roles in agriculture. The campaign will consist of ‘campaign days’ at which a drama team will present a drama followed by informal discussions/ Q&A implemented by Ba Futuru and project staff. This will be followed by a 12 week radio broadcast of a story-line providing more in-depth messaging from the drama.

3. Project Management and Implementation

The following highlights some key project management items:

In this quarter, the project expanded its internship programing, hiring ten new farm system interns (two interns for each municipality), six NRM interns (currently in training and will be assigned to the municipalities), and one Agribusiness Intern (in Dili). Four new Municipalit ies Coordinators were hired resulting in each municipality having two MCs, two Interns and one DCA. Following the departure of the former M&E Specialist the project hired one new M&E Assistant with the new M&E Specialist scheduled to join in January 2017. Recruitment for a new Business Advisor is still on-going following the promotion of Osorio C dos Rego to Agribusiness Manager. The project made significant advancements with the grants program this quarter, as detailed below:

Grants: a. APS#001 - Grant no. G-2016-001 – Tuba Rai Metin – implementing an activity on Bamboo

Planting and Nursery Program in municipalities of Aileu in Maurusa, Ainaro in Soro, Bobonaro in Odomau, and Ermera in Estado. Activity implementation in progress. Conducted monitoring to one of the planting sites in Soro, Ainaro.

- Grant no. G-2016-002 - RAEBIA Timor Leste – implementing an activity on Participatory Land Use Plan (PLUP) in Suco Hera, and Sloping Agriculture Technology (SALT) in Suco Metiaut, Administrative Post of Cristo Rei - Municipality



of Dili. SALT and PLUP activity implementation in progress. First progress report submitted. Conducted monitoring to SALT and PLUP implementation sites.

- Negotiation Memo and Environmental Review Form for grant no. G-2016-003 - Dehydrated Food Processing to be implemented by Arçamaten Industria Bebidas e Alimentar Unipessoal, Lda has been approved by USAID; Grant contract has been signed and activity implementation in progress.

b. RFA#001 – Establish Fruit and Vegetable Packing Facility - Two Full Grant Applications were received, reviewed and approved (NCF and

FarmPro). One of which was rejected due to not responsive ness of the applicant when requested to submit budget for the activity. The applicant is FarmPro.

- Completed pre-award survey and environmental review (IEE) of NCF’s packing facility site in Aileu, and reviewed their personnel, financial, procurement, and travel policies. Pending final budget based on quotation for equipment prior to finalizing Negotiation Memo and approval of the grant activities. Applicant has asked that grant be put on hold.

c. RFA#002– Support Small Scale Processing and Business Service Provider - Ten Full Grant Applications received under RFA#002 for the first round of applications

submitted October 10, 2016; the second round of applications submission is due on January 15, 2017; third on March 30, 2017; and fourth on May 30, 2017. The received applications were reviewed in 4th GSC meeting which was held on November 10, 2016 of which nine applications were approved.

- Conducted Pre-award survey and IEE for four of the approved applicants for RFA#002: Fundasaun Haburas Moris (FHM) to implement an activity to support the establishment of local women entrepreneurs on peanut butter processing in Bobonaro municipality; Comico Maliana Diak Unipessoal, Lda, to implement an activity on Improving the Quality of candlenut, copra, soybean, wild pepper, conjac, peanut, and mung bean processing in Maliana –Bobonaro; Putleo Unipessoal, Lda, to implement an activity on Food Processing in Gleno; and Timor Global, Lda to implement an activity on Passion fruit cultivation and processing.

d. RFA#003– Support Establishment of Fruit Tree Nursery - Four Full grant applications received under this RFA. The applications were reviewed

in the 4th GSC meeting and all four applications were approved. - Conducted Pre-award survey and IEE for three of the approved applicants for

RFA#003: Milinium Green Agro, Lda to implement activity on Seedling and Grafting; Many Hands One Nation (MAHON) to implement the activity on Seedling the fruit and tree nurseries for horticulture development and climate change impact adaptation and preventions; and FARAMFAT Unipessoal, Lda, to implement Tree nursery in Fatukeru-Ermera.

e. RFA#004– NGO Production – approved by USAID. To be published in January 2017. f. RFA#005– Lead Value Chain Company (LVCC) Backward linkages – sent for USAID

approval.

Subcontracts:



a. Request for Proposals (RFP) - RFP#002 – Women Business Leadership Training. Activity implementation

completed. Final report submitted by the contractor (IADE). Final payment completed.

- RFP#004– Artist for Climate Change Comic Illustration for USAID’s Avansa Agrikultura Project. Completed activity implementation.

b. Request for Quotation (RFQ) - RFQ#001 – Strawberry Value Chain Facilitation Assistance. Contracts awarded

to three companies (NCF, Josephina Farm’s, and FarmPro) for a duration of 2 years. Activity implementation in progress.

- RFQ#002 – Annual Agribusiness and Household survey CEE-PAZ (UNPAZ Research Centre) completed the survey and submitted the preliminary report. Final report on survey methodology to be submitted by end of January 2017.

- RFQ#003 – Development and Implementation of Suco Level Natural Resource Management Planning Contract awarded to Santalum NGO. Activity implementation in progress. First progress report submitted. Conducted monitoring of the activity implementation sites.

- RFQ#004 – Input Supply Thematic 2017 Calendar Design Contract was awarded to Vila Grafis. Completed the final design of the calendar design and was approved by USAID. Activity implementation completed, printed calendars have been delivered.

- RFQ#005 – Training for Bamboo High and Low Tunnel – Completed the proposal review, pending final budget from the company to finalize the contract.

- RFQ#006 – Distribution of Irrigation Package – Completed the proposal review. Contract drafted, pending final budget. The selected applicants have been requested to submit final budget based on recommendations provided by Evaluation Committee. PO to be signed in January 2017.

- RFQ#007 – Agribusiness Marketing Material Development – Completed the proposal review. Contract signed activity implementation in progress.

- RFQ#008 – Private Sector Partner for Access to Front-Tine Tiller Machine Package for Rural Farmers – proposal evaluation completed. The selected applicants have requested to submit final budget based on recommendation from Evaluation Committee.

- RFQ#009 - WEE Drama Public Relation Campaign Provider - Completed the proposal review. Contract signed. Activity implementation in progress.

- RFQ#010 - WEE Brochure and Flyer Designer- four proposals received, proposal evaluations completed. Selected organization has been notified.

- RFQ#011 - WEE Radio Broadcast Script Developer- three proposals received, proposal evaluations completed. Selected organization has been notified.

- RFQ#012 - To develop a pool of STTA Agronomist to deliver training in 49 sucos- three applications received. Proposal evaluations completed. Selected applicants to be notified.

- RFQ#013 – Water Tank for Nutrition Garden – due November 30, 2016; two applications received. Reviewed initial proposals submitted; pending additional information on the products offered and price clarifications from the bidders;

- RFQ#014 – Training Manual Developer– four proposals received. RFQ cancelled.



- RFQ#015 - Safe chemical usage training to input suppliers, agriculture extension services, retailers, farmers and agribusiness extension workers – proposal due November 30, 2016, no response received; Extended first round and received no response. It was readvertised on December 13 with a new closing date of January 18, 2017.

- RFQ#016 – Business development services – proposal due November 30, 2016, one response received; proposal review completed.

- RFQ#017 – Youth Agronomist. Proposed to GIZ to co-fund, awaiting their reply.

- RFQ#018 – Training Video Developer. Sent for publication, due January 15, 2017.

- RFQ#019 – Training of Trainers (TOT) on nutrition garden to local NGO to be published in January 2017.

4. Collaboration with USAID, other donor projects, Government of Timor-Leste and the private sector Development assistance coordination and collaboration activities with USAID’s Avansa Agrikultura Project has increased this past quarter as detailed below:

BNCTL: One issue concerning access to finance for farmers is the lack of suitable loans geared towards agriculture. The project is currently in discussions with BNCTL on providing support to review their current agriculture loans and to provide solutions on better loan options for farmers. An expert in this area will be in country next quarter.

Peace Corps: Following requests from Peace Corps, the project has provided training to new recruits on layered garden and basic commodity production. The purpose is to provide the volunteers with simple techniques which will assist them in their postings with building relationships with their local communities while at the same time transferring positive life skills. Volunteers have also participated in trainings within the municipalities with farmer groups from their areas.

Ministry of Education: the Nutrition Team has formalized an agreement with the Ministry of Education to implement the first every Nutrition Garden Competition at the middle school level. This was the first high level MOU signed with the project and the event was attended by various media representatives. Currently the project team is working with the Municipal School Directors to select appropriate schools for the competition. FAO-TL: The agreement details between the project and FAO-TL is to develop a draft Pesticide Law and Manual have been finalized. FAO TL is currently sourcing a national counterpart for the international consultant already sourced.

MAF Municipal Representatives: The project team has been making a conscious effort to better inform and include MAF municipal representatives in project activities. This past quarter the Project drafted activity completion reports for each municipality, a copy of which is also provided to the MAF head office in Dili. MAF representatives have also been included in more meetings and trainings by invitation of project field staff. ADB: Initiated discussions to collaborate with ADB to support the government to improve trade procedures for importing inputs and exporting horticulture products. Quarantine Office : Following requests for additional trainings the project team has completed a Statement of Work to source a competent trainer for quarantine staff. At the direction of the



Director training will occur initial at the office in Dili. Discussions concerning a comparative study tour in the ASEAN region occurred this past quarter and Cambodia has been identified as a potential host country.

JICA/RAEBIA: The project’s newly hired NRM Interns are currently under-going ‘on-the-job’ training with JICA in collaboration with their RAEBIA NRM Site. Once completed the interns will be placed throughout the project’s targeted areas to better implement project NRM activities.

Mercy Corps: Collaboration with Mercy Corps has increased this past quarter following a review of the project’s current Saving and Loan Strategy. MC has successfully implemented their proven methodology and is in agreement to collaborate with the Project moving forward. This will include trainings on methodology and co-mentoring of newly recruited Field Agents to establish and monitor additional S&L groups. Market Linkages: This quarter the project facilitated the largest MOU signing between Farmers in Aileu and four traders from Dili. This event was well attended by MAF and MCIE Representatives, including MCIE Minister Pinto.

5. Environmental Compliance During this quarter, Environmental Compliance Monitoring focused on finalizing Initial Environmental Examinations as detailed below for the following grantees:

Grantee Activity AHMUSTAL To support the increased capability of

AHMUSTAL including its extension services and collection process, in order to better meet markets needs

NCF Support small scale processing and business services development

FHM Support the establishment of local women entrepreneurs with peanut butter production

Supolaim Virgin coconut oil production business

Comico Maliana Diak, unipesoal, Diak Improving quality of candlenut, copra, soybean, wild pepper, conjac, peanut, and mung bean processing

Ficus Sol Nascente Support fig tree plantations across Timor-Leste, based on the herbal tea processing

Tokenela, unipesoal, Lda Candlenut processing in Hato udo

Gloham, unipesoal Lda Establish organic fertilizer factory

Timor Global Lda Passion fruit cultivation and processing

Putleo, unipesoal Lda Food processing in Gleno (Ermera)

Millinium Green Agro Seedling and grafting



Many hands one nation (MAHON) foundation

Development of fruit and tree nurseries for seedling production for horticultural development and climate change impact adaptation and prevention

Faramfat, unipersoal Establishing tree nursery

Tokenela unipesoal, Lda Establishing tree nursery

6. Communications and Media Outputs Following the close of year two the Communications team reviewed activities in order to develop a plan moving into year three which will increase the visibility of the project within the local context while also supporting the project’s eight Outputs with achieving their indicators through materials development. The team, in addition to normal activities, is supporting the development of several PR Campaigns. At present the Nutrition Campaign concerning the importance of a child’s first 1000 days is being developed through animation with CPA (a locally sourced company) and the Women’s Economic Empowerment campaign has been awarded to Ba Futuru who are currently testing messaging through focus group discussions.

The Communications Teams continued to maintain positive relationships with media representatives and facilitated a one day visit to participate in the Farmer Field Day in Gleno, Ermera; and the MOU signing in Aileu on October 20.

This quarter’s newsletter was submitted to USAID for review and approval. Additional materials developed and finalized this quarter include the Climate Change Comic (currently being printed), the project’s 2017 Input Supply Calendar (being distributed), and Crop Rotation Planting Guides by elevation (currently approved in English and being translated into Tetun). These materials will be used both as training and promotion items by the technical teams. It is important to ensure that materials produced are presented in an easy to understand fashion as many farmers have lower levels of education and literacy. Additionally, the team submitted a success story focusing on market access in Hatu-Udo, this has been approved in English and Tetun and is currently being printed for distribution.

The communications team also managed the Project’s attendance at the World Food Day event in Baucau, as facilitated by KONSSANTIL. The booth adequately displayed messaging pertinent to USAID including “from the American people” and showcased handouts of climate-smart agriculture, nutrition, and other project activities. The booth was well attended by participants and generated much discussion from local farmers on how they could benefit from the project and attend trainings.

7. Key Activities Planned for Next Quarter The following are additional key activities which will be implemented in the next quarter: Training of quarantine inspectors Assessment about obstacles to import and license fertilizer Finalize SPS report Finalize and present organic versus inorganic report Present Agribusiness report



Train new farmer groups Initiate finalization of user-friendly training manuals Conduct input study tour to Indonesia Initiate seed variety study with MAF Deliver drip irrigation packages Deliver front-line tiller packages Collaborate with Mercy Corps to expand saving and loan officers Collaborate with GIZ to train agronomists Deliver RFA information sessions for production training, collaboration with lead value

chain firms Train farmers on association formation, farmer book-keeping Implement school garden competition and train teachers Finalize contracts for RFA 2 and 3, start implementation of grants Conduct post-harvest training Work with BNCTL to introduce agricultural lending



Annex 1. Progress against PMEP Results

Indicator ID

Indicator with Unit of Measure Revised Global Targets Targets Year 3 Results: December 2016

DO level: Human and Institutional Capacity for Development Strengthened to Improve the Lives of Timor-Leste’s Citizens

1 Percent change in agriculture GDP increase by 30 % over five years 20% annual survey

Purpose: Sustainable and Inclusive Economic Growth Accelerated in the Agriculture Sector

2 Value of new private sector investment in agriculture sector or food chain as a result of USG assistance (USD)

$825,000 $500,000 (cumm) annual survey

3 4.5.2 (13) Number of rural households benefiting directly from USG interventions 6000 3,000 (cumm) 1784

4 Gross margin per unit of land, kg or animal of selected product (increase in USD/ha/kg/no)

$15000 $13,000 mean annual survey

5 4.5.2(23) Value of incremental sales (collected at farm-level) attributed to Feed the Future implementation (RiA)

$2000 increase by $1800 (cumm)

annual survey

Outcome 1: Policy and Enabling Environment maintained or Improved

1.1 Number of policies analyzed, reviewed or consulted on by USG 20 8 (cumm) 6

1.2 Number of key stakeholders regularly supported (quarterly steering committees, TWG, PPR)

60 55 (cumm) 54

Outcome 2: Change Resilience Increased through Natural Resource Management

2.1 4.5.2 (34) Number people implementing risk-reduction practices/actions to improve resilience to climate change as a result of USG assistance

2600 1200 (cumm) 1248

2.2 Number of hectares for which disaster risk reduction practices are applied 1000 500 (cumm) 298

2.3 Number of co-management/user groups formed, active and strengthened as needed 35 14 (cumm) 17



Indicator ID


Outcome 3: Sustainable Production Practices Adopted at Farm Level

3.1 4.5.2 (5) No. of farmers and others who have applied improved technologies or management practices as a result of USG assistance

5500 2500 (cumm) 1298

3.2 Number of hectares to which improved technologies have been applied 2750 1250 (cumm) 495

3.3 4.5.2 (7) Number of individuals who have received USG-supported short-term agricultural sector productivity or food security training

12500 6000 (cumm) 1840

Outcome 4: Capacity of Farmers’ Groups and Associations Strengthened

4.1 Amount of credit extended to farmers, farmer groups and associations (USD) $1,000,000 $250,000 (cumm) Annual

4.2 4.5.2 (27) Number of members of producer organizations & CBOs receiving USG assistance

4200 2000 (cumm) 1766

Outcome 5: Improved Market Linkages

5.1 Number of farmers, farmer groups and associations with buyer agreements 2400 farmers 1200 (cumm) 182

5.2 Number of food security private enterprises (for profit), producers’ organizations, water users’ associations, women’s groups, trade and business associations, and community-based organizations (CBOs) receiving USG assistance (RiA) (WOG)

170 20 (cumm) 120

5.3 Percentage increase in sales for the targeted farmer groups and associations by end of five years attain mean annual sales of $ 844 per farmer ( 330 %)

50 groups and 1500 farmers, increase by 150%

Annual

5.4 4.5.2 (37) Number of MSMEs, including farmers, receiving business dev’t services from USG-assisted sources (BDS = planning, procurement, TA in production techniques, quality control and marketing, loans, etc.)

2600 (2550 micro, 50 are small and medium)

1400 (cumm) 1766

5.5 4.5.2 (36) Value of exports of targeted ag. Commodities as a result of USG assistance increase to $2.1 million over five years $750,000 (cumm) annual survey

Outcome 6: Function of Private Sector-Based Input Supply System Improved

6.1 Number of private sector agriculture extension workers in target municipalities 50 20 (cumm) 10

6.2 Number of companies selling agricultural inputs to farmers 50 20 (cumm) 15

6.3 Value of sales by agricultural input supply companies $ 700,000 $450,000 (cumm) $246,456



Indicator ID


6.4 Number of farmers, input suppliers, and agribusiness trained in safe chemical use and certified

1000 250 207

Sub Purpose 2: Increased Ability of Timorese Citizens to Engage in Economic Activities

7 4.5 (9) Daily per capita expenditure (as a proxy for income) in USG assisted areas $2.80 per day $2.00 annual survey

8 3.1.9.1 (3) / 4.7 (4) Prevalence of HHs with moderate to severe hunger 3.4% 12.6% annual survey

Outcome 7: Knowledge and Behavior on Nutrition and Sanitation Practices

7.1 3.1.9.1 (1) Prevalence of children 6-23 months receiving a minimum acceptable diet (Percent) 50% 44% annual survey

7.2 3.1.9 (2) Mean number of food groups consumed by women of reproductive age 6 5 annual survey

7.3 MDDW, Min Dietary Diversity Indicator for Women of reproductive age. Could replace 7.2 mean number of food groups.

25% women consuming 5 or more groups

10% women consuming 5 or more groups

annual survey

7.4 Number of youth participating in USG-supported programs designed to transfer life skills 5000 2000 (cumm) 145

Outcome 8: Improved Skills to Utilize Productive Assets for Economic Activity

8.1 Percent increase in household savings and/or investment in productive assets (150%) 150% increase 25% increase Annual survey

8.2 Number of savings and lending clubs established 20 10 5

8.3 Number of participants in USG-assisted educational programs transferring entrepreneurship, business management, financial literacy, household financial management, or budgeting skills

1,200 650 665

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QUARTERLY REPORT: OCTOBER - DECEMBER 2016

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