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Caucasus Agribusiness Development Initiative (Armenia and Georgia)
 

Woman and man hold up a string of cheese, with other food workers in the background.

As a result of USDA’s intervention, the Balaki Lchak cheese company in Armenia has expanded the variety of cheeses that it produces and has backorders for all of its products. The company is now working to expand its capacity.

This program helps farmers and agribusinesses grow their enterprises, increase incomes, and create jobs leading to sustainable livelihoods for rural populations in Armenia and Georgia, working with the U.S. and international academic communities and private sector. Focus is on identifying and solving quality assurance problems in the supply chain, developing technical and financial packages for farmers and agribusiness to ensure competitiveness and growth, and building government capacity for trade and formulating market-based agricultural policy. In Fiscal Year 2005, USDA received $7.66 million in funding through the Freedom Support Act.

  • Agricultural Market Development

  • Reducing Hunger

  • Trade Capacity Building

  • Scientific Cooperation and Natural Resource Management


Romania Agribusiness Development and Policy Support Program

Since 1998, USDA has been working in cooperation with the U.S. Agency for International Development and the Romanian Ministry of Agriculture, Forestry and Rural Development to provide technical assistance and training through workshops and seminars, technical and scientific exchanges and third-county field visits.

Background

Prior to 2000, Romania’s agriculture sector was hampered by slow privatization and inconsistent macroeconomic reform. Since 1990, Romania has been a net importer of food products due to inefficient farm size and impediments such as legislative and regulatory shortcomings, shortage of rural credit, inadequate property laws, and poor infrastructure. All these factors have affected crop production and increased risk in agriculture. However, agriculture remains an important sector in the Romanian economy, representing nearly half of all employment and 12 percent of the country’s total gross domestic product. In recent years, the Government of Romania has pursued a comprehensive program of reform and restructuring to reduce state intervention and create opportunities for significant growth in market-based agriculture and agribusiness sectors.

Focus

  • Harmonization and implementation of food safety and quality standards that meet obligations to international and regional standard setting bodies, especially the World Trade Organization and the European Union.

  • Creating a more supportive environment for the development, use, regulation and control of biotechnology and other emerging sciences and technologies.

  • Development of agricultural finance, trade, investment, and credit instruments.

Success Stories

The agribusiness development program in Romania supported by USDA has had the following results:

Scientific capacity building. In Year/From Year to Year (needs timeframe), over 35 aspiring leaders and young scientists in the agricultural sector have gained knowledge and developed skills to make Romania’s agricultural sector more productive and competitive through technical training in the United States on biotechnology, food safety, plant and animal health, dairy herd management, livestock genetics, water quality management, and animal waste management.

Food Safety. Training in Hazard Analysis and Critical Control Point (HACCP) - protocols for ensuring the hygiene of food processing and packing - resulted in five Romanian meat processing plants passing U.S. food safety inspection audits and meeting equivalence requirements. Technical assistance in satisfying ISO 9000 requirements and establishing a new National Sanitary Veterinary and Food Safety Authority helped prepare Romania for entry into the European Union.

Rural Credit. A rural finance training program for potential borrowers, financial consultants, lenders, credit program representatives, donors, and government officials resulted in credit being extended for a wide range of operations like farm equipment, bee-keeping, rural tourism, and commodity processing. Since the program’s inception in February 2004, approximately 100 new loans worth over $3 million have been initiated.

Forest Management. A two-year training program in private forest ownership and management awareness resulted in the first international certification for a private forest landowner in Romania: 18,200 hectares in the Naruja Private Forest District.

Warehouse Receipts. Establishing a system of warehouse receipts laid the groundwork for the creation of an €89 million joint risk-sharing facility between the Economic Bank for Reconstruction and Development and the Banca Romana Pentru Dezvoltare – Groupe Société Générale. Under the facility, companies can use commodities stored in warehouses as collateral against loans for the next crop season, providing agriculture processors and traders across Romania more access to finance.

Contact:
USDA Foreign Agricultural Service
RomaniaADAPS@fas.usda.gov


Agricultural Technical Assistance Under the Middle East Partnership Initiative

In support of a forward strategy of freedom in the Middle East, the United States is seeking comprehensive free trade agreements with countries spanning North Africa and the Middle East by the year 2013. The Middle East Partnership Initiative is the primary means to promote this goal.

Under the Middle East Partnership Initiative, the U.S. Department of Agriculture is providing technical assistance and training to better prepare a cadre of government officials, scientists and private sector representatives to respond to key agricultural issues that could impede economic growth and agriculture development. There have been activities to date for Algeria, Bahrain, Kuwait, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, the United Arab Emirates and Yemen. This two-year program focuses on four key needs: policy and regulatory reform, scientific capacity building, trade capacity building, and consumer education and outreach.

Contact:
USDA_MEPI@fas.usda.gov


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