EVALUATION OF THE 
AGRO-INPUT 
MARKET 
DEVELOPMENT 
(AMDA) PROGRAM
 IN AZERBAIJAN
 Prepared for
USAID/Azerbaijan
Regional Mission for the Caucasus
 Prepared by
William Albanos Jr. 
Checchi and Company 
Consulting,Inc./The 
Louis Berger Group, Inc. 
Joint Venture 
1899 L Street, NW 
Suite 800
Washington, D.C. 20036
 
Contract No. AEP-I-822-00-00022-00
 July, 2003 
International Fertilizer Development Center (IFDC) A Azerbaijan AMDA Project, Mid-Term Review i 
Executive Summary 
The report focuses on the evaluation of the IFDC AMDA $3,111,370 Program Project No. 112 -A-00-02-
00005-00 in USAID/Caucasus – Azerbaijan. The principal concentration is to examine the AMDA 
activities in accomplishing the terms and objectives of their Cooperative Agreement in achieving the 
Mission’s Strategic Objective (SO) 1.3. The goal of this exercise is to describe the methodology of 
implementation in order to identify areas of improvements and possible mid-course corrections. The 
work looks at the status of the current activities, their successes and weakness and provides insight for 
possible improvements and adjustment that will enhance the project and the mission objectives. 
Additionally, the report attempts to provide a better understanding of the current overall environment for 
the development of the agricultural sector in Azerbaijan, and provides suggestions for future intervention 
in the agricultural sector. The format approach (which is to be commended) was to answer a set of 
questions in the hope that this would open up the examination process of all the activities from many 
different angles to further the reader’s understanding of the situation. Although the project activities were 
delayed due to a legal registration issue, it has been effectively in operation for 13 of its 15-month life. It 
appears to the reviewer that a slow start to project activities does have a detrimental effect in the long run 
on completing the project mission. Therefore, a justification examination of the impediments to start-up 
of activity for any project should be generally implemented. 
The report finds that the IFDC project has accomplished one of its main objectives, which was to 
establish a National Input-Dealer Association with representation for the five regions under project 
purview. One core purpose of this AMDA project is to facilitate the transfer of technological 
improvements to the farmers of the Azerbaijan agricultural sector. The strategy is to organize the input￾dealers (potentially 450-600 in Azerbaijan) who have certain attributes that the farmer may not possess, 
such as being a more sophisticated entrepreneur, having better liquidity, usually having income from 
more than one source and considered to be a leader in his community. Building a market-oriented 
solution using the input-dealers to develop and implement the transfer of technology to the farmer is 
similar to establishing a private extension service as opposed to promoting the development of an 
inefficient government-operated service. The input-dealer is the central element in the puzzle to improve 
the condition of the Azerbaijani agricultural sector. The quality and quantity of the outputs are only as 
good as quality and quantity of inputs provided. The dealer’s role as the transfer-of-information link to 
the farmer is crucial to achieving the Strategic Objective 1.3 mission. The project has developed an array 
of technological publications (22 leaflets, 7 brochures, and 7 posters) that are used by the input-dealer to 
help the farmer improve his output, thus selling him more inputs. This in essence is demand creation as 
opposed to the project just adding to supply. The project is not planning mass distribution of the 
publications but rather plans to promote them as a point-of-sale tool for the input-dealer when selling to 
his customer, the farmer. The cost of this service is built into the input-dealer’s final selling price. This 
offers the input dealers an opportunity to develop a franchise wherein the farmer goes to the input dealer 
for service, thereby improving the financial status of both the dealer and, indirectly, the farmer. Another 
major tool for transfer is the establishment of demonstration plots and farm trials. This approach is taught 
to dealers as an efficient way to evaluate the consequences of the new technologies and distribute the 
results to farmer-customers. The project must be aware that its efforts should expand influence of input 
dealers in the Azerbaijan agricultural sector, and not just reshuffle the market shares of the ones that now 
exist. 
Another of the core accomplishments of the new association is to increase the knowledge and 
effectiveness of obtaining credit to lubricate the growth of production in the Azerbaijan agricultural 
sector. What has been accomplished is that more than 100 dealers have been indoctrinated and convinced 
that credit is not a gift and must be repaid. Information has been widely disseminated on credit sources, 
availability of credit funds, prevailing interest rates, terms and conditions, collateral requirements and/or 
registration, the ethics and methodology of business plan principals, and, finally, how to fill-out credit 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review ii
applications. The author points out that a major problem is that the medium and larger entrepreneurs 
have no program to help receive credits for capital expenditures related to managing (storage and/or 
collection points) any major increases in production caused by the ultimate success of project intention to 
increase productivity. The project is 243% ahead of projections on the number of dealers receiving 
credits. One indicator that can be interpreted as a confidence gauge is the amount of self-investment of 
the dealers. This result ($92,130 vs. $250,000) is slightly behind expectations, but COP suggests that the 
slow start of project activities has been a factor. 
The association goal of increasing the benefits of networking has also shown great promise. From the 
advocacy topic, a strong feeling has developed by members that in numbers they can affect the 
environment around them—that being either government and/or market power issues. Advocacy has had 
some success in Azerbaijan in the recent past. Although not directly attributed to the association, the 
current president was a major influence in the implementation of wheat support prices being installed. 
The PAPA activity most likely was a major influence in the unlicensing (registration-only required) of ice 
cream sales on the streets of Baku, and there has been a dramatic reduction on government license 
requirements from 280 down to 30. Of course, only about 10% were of an agricultural nature. In general, 
the project has brought together individual entrepreneurs living near each other but never meeting in an 
atmosphere where they could discuss common problems and develop collective solutions. It is suggested 
that in the near future, a lobbyist skilled ST consultant be retained to add this training to the association 
curriculum. 
The reviewer has made certain suggestions that a macro strategic plan for the sector is needed to include a 
program on marketing training for agricultural outputs as a companion to the IFDC project of increasing 
input consumption by productivity increases. The suggested approach from the IFDC project standpoint is 
to develop an exporting regime only on the most competitive homogenous agricultural commodity 
products (e.g., apples, potatoes, tomatoes, cucumbers, etc.) and then in a second stage move into more 
complicated differentiated value-added production (meat and livestock, dairy, processed foods, etc.). The 
systematic details are provided in the report. This strategy assumes that increased export marketing skills 
will spill over into the domestic marketing skills for a double benefit of development dollars. All that 
being said, several Azeri meat and dairy processors currently have experience in exporting to former 
Soviet republics. USAID might consider that both horticultural and animal product sectors are ready to 
focus on exporting. This consideration for immediate moving into the second stage scenario would be 
reasonable. 
In the opinion of the reviewer, the ME issues reveal several shortcomings. First, the concept of 
measuring success by monitoring the dealers’ activity and well-being is not transparent enough since most 
of the true benefits of the dollars invested by USAID pass through to the farmers. Regardless of the 
quality of the measurements, there is very little setting of goals by which to measure levels of success. It 
is fruitless to set indicators unless there are projected qualitative and/or quantitative goals at inception to 
measure against. Finally, the reviewer suggests that the project budget item of OTHER, usually referred 
to as miscellaneous, is a lighting rod for concern. Why not just report the five sub-elements of this 
category separately as delineated in Appendix J, Table 3. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review iii
Methodology 
This report is part of a set of evaluations which investigates the 
performance of the IFDC AMDA Project in Azerbaijan. The 
evaluation was prepared over a 26-day period between 5 June and 5 
July 2003. The IFDC evaluation report is a mid-term review intended 
to be used by project managers to enact mid-course corrections in 
project operations so it can more efficiently achieve its target 
objectives under USAID Azerbaijan SO 1.3. 
The evaluation processes included a full review of all relevant 
project documents, including, but not limited to, the original project 
grant agreements, project quarterly reports ,and training materials 
prepared by the project. Additionally the evaluator reviewed the 
applicable USAID Strategic Objectives and Intermediate Results 
indicators and examined if and how the projects under review were 
contributing to these targets. The evaluator, Mr. William Albanos, 
conducted interviews with project managers and staff as well as 18 
association members, farmers, and marketers. 
The organization and questions addressed in the evaluation report 
directly follow by the questions, order, and organization of the Scope 
of Work prepared by USAID Baku. In some cases, the wording of 
the questions has been modified for reasons of language efficiency. 
Additionally, several of the questions raised in the SOW have been 
collapsed into a single sector heading in an effort to minimize text 
redundancy. 
Acknowledgments 
The preparation of this report would not be possible without the 
generous assistance of the staff of the entire Agro-Input Market 
Development in Azerbaijan (AMDA). Specific thanks go to Chief of 
Party Manfred Smotzok and Deputy COP Ylli Bicoku for their 
assistance through the entire process of the evaluation. Also, special 
thanks go to Peter Duffy and Jeff Lee of USAID-Baku for their work 
in organizing the evaluation team’s field work and providing insight 
into the unique nature of the Azerbaijan operating environment and 
local communities. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review iv
Map of Azerbaijan 
Acronyms 
ADRA Adventist Development and Relief Agency 
AMDA Agro-Input Market Development in Azerbaijan 
AMOA Azerbaijan Ministry of Agriculture 
ATC Average Total Costs 
AZ Azerbaijan 
CHF Community Habitat Finance 
COP Chief of Party 
CPP Crop Protection Products 
EMA Azerbaijan Private CPP Trader 
EU European Union 
FSU Former Soviet Union 
IFDC International Center for Soil Fertility and Agricultural 
Development 
IR Intermediate Results – USAID 
IRC International Rescue Committee 
IFRC International Federation of Red Cross 
MT Metric Tons 
MY Market Year 
PAPA Participatory Agricultural Project in Azerbaijan 
SO Strategic Objectives – USAID 
SOW Scope of Work 
ST Short Term Consultants 
TSP Triple Super Phosphate 
USA United States of America 
USAID United States Agency for International Development 
WVI World Vision International 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review v
Table of Contents 
1.0 General Page
1.1 Introduction 1 
1.2 Interventions Most Effective in Achieving SOs and IRs 1 
1.3 Recommended Changes in Implementation Resulting in Enhanced Results 4 
1.4 Opportunities for Integrating Program Components Resulting in Greater Impact 4 
1.5 Unexpected Benefits and Impacts as a result of Project Activities 5 
1.6 Unexpected Negative Impacts the Program Need to Address 5 
1.7 Appropriateness of Activities for Improving Agribusiness Development in 
Targeted Areas 
6 
1.8 Appropriateness of Assumptions and Activities Relative to Operating 
Environment 
6 
1.9 Intervention Cost-Effectiveness 7 
1.10 Follow-on Activities that Should be Considered to Maintain Momentum 7 
2.0 Agriculture and Agribusiness 
2.1 Opportunities for Improving the Agribusiness Sector’s Marketing, Volume, 
Product Quality and Business Skills 
1 
2.2 Project Effectiveness in Capturing Opportunities to Improve the Agribusiness 
Sector 
9 
2.3 Market Access for Products and Services Produced by Client Entrepreneurs 9 
2.4 The Nature and Effectiveness of Assistance Provided to Entrepreneurs and 
Associations 
10 
2.5 Constraints to Reaching Association Members 10 
2.6 Expanding Activities to More Fully Incorporate Association Members 
(especially AMDA) 
10 
2.7 Effectiveness of Associations in Delivering Improvements in Agri-production, 
Productivity, Product Quality, Financial and Other Services 
11 
2.8 The Role Business Associations Play in Agribusiness Development 11 
2.9 The Main Areas on Which Business Associations Need to Focus 11 
2.10 Political and Economic Representation of Project Assisted Associations 12 
2.11 Overall Impact of Program-Assisted Associations/Enterprises on Agribusiness 
Development 
12 
2.12 Business Development Activities’ Contribution to Improved Productivity and 
Access to Credit 
13 
2.13 Enhancing Business Development and Training to Improve Productivity and 
Access to Finance 
13 
2.14 Effectiveness in Tracking the Progress of Client Entrepreneurs 13 
2.15 Effectiveness in Facilitating Client Entrepreneurs Access to Finance 14 
2.16 Effectiveness of Assisting Entrepreneurs in Applying Newly Acquired 
Management, Marketing, and Business Skills 
14 
2.17 Field Demonstration Projects’ Relevance to Real World Farmer Problems 
(AMDA only) 
14 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review vi
3.0 Adoption of New Practices 
3.1 Beneficiaries Adoptions of Recommended Practices 15 
3.2 Types of Practices Adopted By Beneficiaries 15 
3.3 Program Modification to Maximize New Practice Adoption Rates 15 
3.4 Primary Source of Information Concerning Business Practices 15 
3.5 Other Key Channels of Business and Technical Information 16 
3.6 Client Satisfaction with the Quality of Technical Assistance Provided 16 
4.0 Business Association Development and Capacity Strengthening 
4.1 Overall Progress and Approach to Association Development 16 
4.2 Effectiveness in Developing Association Capacity to Affect Change in 
Agribusiness Policy and the Regulatory Environment
17 
4.3 Strengthening Association’s Advocacy Capacity 17 
4.4 Appropriateness of Approach in Organizing Associations to Serve as a Forum for 
Agri-Policy Dialogue with the Government 
17 
4.5 Appropriateness of Training Materials and Marketing Information Supplied by 
the Implementer 
18 
5.0 Sustainability Issues Relating to Recommended Practices 
5.1 Sustainability of Project Outcomes 18 
5.2 Most Likely to be Sustainable Adopted Practices 19 
5.3 Least Likely to be Sustainable Adopted Practices 19 
5.4 Options to Increase Sustainability of Adopted Practices 19 
5.5 Long-term Likelihood of Client Enterprises and Associations to be Sustainable 20 
5.6 Current Number of Operating Client Enterprises and Associations 20 
5.7 Client Leveraging of USAID Support Through Other Donors 21 
5.8 Association Membership Dues and Fees 21 
6.0 Monitoring and Evaluation 
6.1 Achievement of Project Targets 22 
6.2 The Quality and Reliability of Performance Indicators 23 
6.3 The Use of M&E Data and Anecdotal Information by Project 
Management 
23 
6.4 Options to Better Utilize M&E Data and Anecdotal Information by 
Project Management 
24 
Appendices 
Appendix A Evaluation SOW 
Appendix B Relevant USAID Azerbaijan SO’s and IR’s 
Appendix C Interviewee Contact List 
Appendix D Eighteen Interviewees Comments 
Appendix E Publication Array (Leaflets, Brochures and Posters) 
Appendix F Published IFDC Project Objectives 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review vii
Appendix G Drip Irrigation Diagram 
Appendix H NGO Newspaper Article 
Appendix I Case for Exporting Azerbaijan Agricultural Outputs 
Appendix J Table 1 and Table 2—Results Indicators 
Table 3—Budget 
Appendix K IFDC Staff 
Appendix L Activities Details for First 15 Months 
Appendix M Farmer Questionnaire 
Appendix N Azerbaijan Country Profile 
Appendix O USAID Presentation 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 1
Mid-Term Review of the 
AMDA Program—Azerbaijan 
1.0 General
1.1 Introduction
The IFDC AMDA $3,111,370 Project No 112-A-00-02-00005-00 has been in operation since January 30, 
2002 and the term will run until January 30, 2005. However, due to the delay of legal registration under 
Azerbaijani law, it effectively exists only since December 31, 2002. With the usual set-up curve of 
finding office space and searching and employing qualified local expertise, two months had elapsed and 
the effective operations have been only slightly over one year. The goals and objectives have been 
planned and put in writing (See Appendix F). The purpose of this endeavor is to determine if these goals 
have been attained. Some suggestions for mid-course corrections to better accomplish the objectives will 
also be included in this work. 
This project has been compartmentalized into four sections: 1) BUSINESS DEVELOPMENT AND 
TRAINING; 2) ACCESS TO CREDIT AND FINANCE; 3) ASSOCIATION BUILDING; AND 4) 
TECHNICAL TRAINING, TRANSFER, AND EXTENSION SERVICES. The major program intention 
of AMDA is to increase production and productivity by advancing the development of private small and 
medium enterprises within the five regions of THE REPUBLIC OF AZERBAIJAN, namely, MASALLI, 
GUBA, GANJA, ISMAILLI AND SHEKI; additionally some work is being done in the ZAGATALA 
region. The project influence is limited to only 11 of the 64 districts, or 17.2% of the whole country. The 
AMDA application is to increase the creation of demand and facilitate the supply of inputs (fertilizer, 
pesticides, seed, and animal feeds). This is to be accomplished by undertaking a built-in program of 
dealer training, improving and expanding credit access, institutional competence building, and technology 
transfer. Based on a notation from the first Annual Report, animal feed was taken off the input list in the 
AMDA project. 
1.2 Interventions Most Effective in Achieving SOs and IRs 
BUSINESS DEVELOPMENT AND TRAINING (23.3% of budget allocation)
The unique approach used by this project staff was to assemble dealers (more sophisticated entrepreneurs 
with liquidity, business acumen, and, usually, outside income, rather than just farmers) and not subject 
them to the usual alliance-building explanation, but rather initiate and expose them to the benefits of a 
networking regimen. The result was that this led to a natural self-conclusion that the group should evolve 
into a cohesive organization—basically, that an association-type relationship between them was an 
improvement to themselves. The IFDC strategy was to seek out and make contact with dealers in the 
regions. The goal was to find in the forefront dealers who would identify and target their progressive 
customers (the farmers). After exhaustive searching, 150 potential participants were identified, wherein 
80 to 90 were finally selected. In general during the first year, March - December 2002, ten different 
activities were activated with participation of 570 farmers, with 471 also being input dealers (see 
Appendix L). During the next period under observation, January - May 2003 (42% of the year’s activity), 
12 different activities are reported with 663 farmers, with 507 also input dealers. Extended out to 
projected full-year numbers including a projected 10% increase results in 1,736 farmers, with 1,328 being 
our targeted input dealers. This demonstrates a probable increase from the first year of 162%. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 2
The IFDC project has contributed to the Land O Lakes (LOL) market information newsletter. This is 
published monthly, and more than 500 copies are distributed monthly. Market information about input 
prices and commodity pricing will make up the major emphasis of the publication. The IFDC is in 
negotiation with the closed LOL project to take over this operation. They will be adding to the IFDC staff 
starting 1 July 2003 the individual responsible at LOL. 
TECHNICAL TRAINING, TRANSFER, AND EXTENSION SERVICES (30.0% of budget allocation)
The project has intervened to implement project objectives and improve the situation by developing an 
effective information network chain to the dealer and his farmer clients. Then these dealers were asked to 
each identify and bring in ten progressive type farmers1
 to participate in farm trials2
, using TSP fertilizer 
supplied by the project. Project specialists were onsite with the dealer at the point that they help the dealer 
launch this new methodology to the farmers. Official results of the wheat trials will be available after 
harvest, around September 2003. An indication of a huge success has already been seen, as dealers were 
so impressed with the early results that they themselves purchased and sold 260 mt of TSP to additional 
neighbor farmers. At this time, there are 230 wheat farm trials under observation. 
 An identical tactic to create a similar network for other commodities was needed; however, in this case 
the goal was to have demonstration plots3
. The strategy of using plots shows a (7x4) matrix of results of 
several input techniques such as a mixture of fertilizer, pesticide use, differing variety of plants, drip 
irrigation techniques and other up-to-date methodologies4
 available for transfer. The dealers will 
eventually pass this information on to their clients—the farmers. Four dealers were selected for potatoes, 
yielding four demonstration plots; three dealers generated three demonstration plots for vegetables, 
including the use of new Israeli drip irrigation technology (see Appendix G). Four dealers were identified 
for apples, who provided four plots; for maize and alfalfa, two dealers provided four demonstration plots 
and four wheat dealers provided four wheat plots. Many plots, strategically placed (near their neighbors’ 
farm and/or near highways), can do the job (by word of mouth) of introducing to the neighborhood the 
new methodologies by the undeniable example of increased yields and healthy looking plants or trees. 
 
1 The project’s skill in identifying the most receptive farmers (progressive farmers) is useful in targeting the resources effectively. The project’s 
criterion for selecting these farmers is most intriguing. Items such as 1) early crop planting requires growing plants inside to seedlings before 
season starts—this signals an entrepreneur spirit; 2) observing the quality of seeds purchased—denotes risk taking; 3) noting ownership of farm 
equipment, and/or developing sharing programs with neighbor farmers—signals cooperative behavior; and finally, 4) identifying the size of the 
plot under cultivation: 2 hectares for vegetable and fruit type outputs, 20 to 40 hectares for wheat type production. 
2 Farm trials are a process in which the farmer is given the input and the farmer himself manages the use of the input as per 
instructions. 
3 The project personnel, not the farmer, design and control demonstration plots. The amounts of inputs are varied and monitored by 
project personnel during the growing season. 
4 The project has designed and published many professionally produced color information leaflets, brochures and posters for 
selected crops and fertilizer products. These are used by the dealers to support the linkage between the dealer and his customer—
the farmer. There are 22 different leaflets, 7 different brochures and 7 different posters used to this end. Over 31,000 have been 
published and distributed to the dealers. See Appendix E for project supplied details of the information provided. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 3
Credits Given to Clients by Region
0
1
2
3
4
5
6
7
8
9
Guba Masalli Lenkoran Ganja Ismailli
Regions
No of Clients
ACCESS TO CREDIT AND FINANCE (26.7% of budget allocation)
Chart 1 
Interventions for the financial aspects of 
the project clients (input dealers) have 
been far-reaching. Project staff met with 
36 commercial banks and only 6 
expressed any interest in issuing 
agricultural loans. Other credit sources 
contacted are the KFW fund, the Rural 
Investment Fund (EU/TASIC 
supported), Finca, NHE, World Bank 
Project, and CREDAGRO (ACDI/VOCA 
supported). The intermediate results up 
to this point are as follows: 1) over 100 
dealers have been indoctrinated and 
convinced that credit is not a gift and must be repaid; 2) information has been disseminated on credit 
sources, availability of credit funds, interest rates, terms and conditions, collateral requirements and/or 
registration, and business plans principles; and 3) the self-investment by local entrepreneurs (a confidence 
level indicator) has fallen short of project expectations. The forecast calls for a total investments by the 
end of three years to be US$250,000 and at this time is less then the 50% target for one half of time that 
project exists, at US$92,130, or 88.4% of target (this can be attributed to the late starting of project 
activities and all indications suggest that it may progress faster within the second year of operations); and 
finally, the reverse is true as for total credits received, as the projected amounts is US$90, 000 with 4 to 5 
dealer firms borrowing to this point. Actually up to May 31, 2003, more than 26 dealers in 5 regions (see 
Chart 1) received credits for US$218,5005
—this is 243% of projections. 
ASSOCIATION BUILDING (20.0% of budget allocation)
Chart 2 
The next step in the intervention process 
was to organize and strengthen the input 
dealers. A first step in this process has 
been accomplished by the project namely 
to organize the dealers into an agricultural 
association. Major progress to this goal 
has been completed with the efforts of 
project specialists with both in-country 
staff and short-term consultants. Dealers 
in the five regions under the purview of 
the project have organized into differing 
regional presence, under a national 
umbrella organization (See Chart 2 for 
Organization Plan), the Azerbaijan 
Agricultural Input Dealers Association (AAIDA). The association President, Vice-President and 
Executive Council members have prepared and signed on June 2, 2003 the necessary official legal 
documents to become an official Azerbaijan Organization (See Appendix H for copy of news article in 
June issue of NGO News, published in Baku). The tentative regional membership is as follows: 22-25 for 
 
5 Actual amount reported is US$338,500, but a $40K and $80K credit has some identification problems and has been deducted by 
AMDA staff. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 4
Ganja region; 16 for Ismailli region; 16 for Guba region; 22-25 for Masalli region; and 10 for Sheki 
region (86-92 total). A problem however, is that no official recognition can be claimed until final 
government approval is received. This means the association can not apply for any grants and that all 
financial activity will be handled by the AMDA project administration until the official organization can 
open a checking account. All elections of regional officers have been completed and the local 
Azerbaijani participants enjoyed the transparent process of democratic elections. The unofficial dues 
amount of $30 per member has been voted and approved by local members and local officers are 
collecting the funds starting July 1, 2003. 
1.3 Recommended Changes in Implementation Resulting in Enhanced Results 
An important enhancement to the final success of this project will be the development of marketing 
improvements for agricultural product outputs of the REPUBLIC OF AZERBAIJAN. A new project can 
be initiated as a companion to the IFDC goals that would be needed to sustain the demand of inputs. The 
association of dealers can be transformed and can be elevated into effective marketing groups introducing 
a new coordination element. Expertise in increasing marketing in both the domestic and global 
marketplace by instituting grades and standards, developing collection points, quality control procedures6
, 
improved packaging, and brand-name selling have all been well documented as major modification of 
low-priced commodity-type products to high-value, differentiated branded output. For example, 
marketing for export “APPLES FROM THE GUBA REGION” would be a likely first step approach to 
increasing the value of the Guba region products. Equivalent consequences can be investigated for the 
vegetable, fruit, and potato producing regions as well. New technology transfer is being implemented and 
can be improved by introducing greenhouse and drip irrigation procedure for fruits, tomatoes, and 
cucumber production. For wheat production, the improvement of forward linkages can address the 
problem of linking coordinating information between the producer and the grain miller. Problems of 
steady supply of quality grain to produce bread flour and fair pricing can be addressed through a 
marketing association relationship 
1.4 Opportunities for Integrating Program Components Resulting in Greater Impact
The legal registration of new association entities seems to present an inconvenience, and the use of 
“political capital” to alleviate the problem by “the players” is limited on agricultural issues. The problem 
is complex and not easily addressed. It takes four separate approvals for a donor organization to be 
approved (Ministry of National Security; Ministry of Justice; Ministry of Foreign Affairs; and the 
Cabinet); however, local association-type organizations need the Ministry of Justice only. Under 
Azerbaijani law, organizations fall into two distinct groups. Either an organization is considered a Non￾Government Organization (NGO) or, under economic law, an organization for profit making. Approval 
from three of the entities appears reasonable; however, the Ministry of Justice approval seems many times 
unachievable. For political reasons, the Ministry retains a tight hold on authorizing new NGOs, and since 
agricultural organizations are not-for-profit, no recognized niche in the system exists. In the near future, 
high-level intervention from an agricultural development project with a policy element should address 
this problem. 
The encouragement of expanding production of the project’s clients leads to the problem of inadequate 
and/or underdeveloped credit availability to lubricate this growth. Low competition among banks 
generates high interest rates. There are more than 30 banks in Azerbaijan, but most of then are in poor 
condition with low cash resources and cannot provide credits. Most of the cheap credit providers (World 
Bank and EU TACIS projects) have had severe problems and have limited their involvement. Those few 
banks that operate in regions accept as collateral only jewelry, vehicles, and real estate in major cities. No 
 
6 A/K/A Seal of Quality Programs. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 5
IFDC Clients Cost Sharing Contribution
0,00
20,00
40,00
60,00
80,00
100,00
120,00
Feb-02
Mar-02
Apr-02
May-02
Jun-02
Jul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Jan-03
Feb-03
Mar-03
Amount (US$)
bank accepts land or real estate in regions. Only the CREDAGRO, an ACDI/VOCA program has been 
successful. 
1.5 Unexpected Benefits and Impacts as a result of Project Activities
Chart 3 
Donor funded 
activities like the 
AMDA project are 
designed to give an 
interim shot in the 
arm to the local 
agricultural 
entrepreneurs which 
is designed to be 
ongoing. Many times 
a significant long￾term improvement 
can be documented. 
The major policy tenet extended during 
the project activity is that the donor is 
temporarily giving 80% support while 
the recipients is matching something—usually up to 20% of the activity costs (cost sharing contribution 
requirement). When the donor “folds the tent” and leaves, many project activities should be able to have 
developed a reverse ratio—an 80% contribution from the local entrepreneurs with some minor continuing 
cost contribution, say 20% from the donor. This is usually a problem as local entrepreneurs in the past 
have not been successfully trained in developing sustainability in their project activity or the project is 
prematurely withdrawn before stability has been accomplished. However, facts indicate sustainability 
seems to be an important ingredient to the AMDA project. All IFDC training is directed to an 
improvement in information transfer and cohesive organization building, but underlying is the major 
point that self-sustainability after the program has ended is a critical element to success. Another major 
side effect is the exposure of the dealers to the democratic system—not just the political exercise of 
electing association management, but to business democracy—how free business with only minor 
government interference can thrive and that the role of government to provide a legal system which will 
help protect them from each other so they can do business without interference from bullies and 
monopolists. 
1.6 Unexpected Negative Impacts the Program Needs to Address
As the project succeeds and both productivity and quality of output is improved, a serious shortcoming 
will become evident after a year or so of full operation. Agricultural production exhibits an inelastic 
demand curve wherein small increases in quantity might trigger large declines in product prices. Some of 
this phenomenon will be offset by the reduction of average total costs (which is a major goal of the 
exercise) but the risk is that a portion of the price reduction will directly reduce agricultural incomes. A 
companion marketing initiative should be developed as the productivity increases are affected. 
Identifying and preparing Azerbaijan small and medium agricultural entrepreneurs for new markets could 
be part of a development project in the future. The effect of agricultural exports as a tool of market 
expansion for agricultural producers is persuasive as increased exports generally have the positive effect 
of raising product (output) prices. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 6
The problem of inadequate financing to lubricate the potential growth envisioned by the project goals 
seems overwhelming. Most banks are concentrated in the capital. Banks have no branches in regions. It 
is inconvenient for them to monitor remote credits. Specifically, a number of regions (Sheki, Ganja, 
Shamkir) are not covered by credit institutions. The reason given by institutions is that there is a lack of 
tax reports on which they must rely for information. Additionally, dealers are reluctant to release 
information about their financial condition and prior credit received due to tax authority implications. 
Innovative project development of this financing issue would address an important constraint to 
agricultural sector growth. 
1.7 Appropriateness of Activities for Improving Agribusiness Development in Targeted Area 
Touring the targeted areas reveals the need for information transfer of new technology and improved 
operating performance for agricultural production. Under the old socialist system, trained agronomists 
worked on the collective and passed instructions to the untrained working teams. These team members 
knew little about what the proper techniques of production were. When land reform arrived, these team 
members became small plot farmers who had no knowledge or training. The results are seen all over the 
countryside, where farmers are trying to scratch out subsistence living. Our project goal of transferring 
technology to the dealer, who passes this to his customer the farmer, is a direct approach to addressing 
this major shortcoming in Azerbaijan countryside activities. In the opinion of the COP, there seems little 
doubt that an increase in productivity, which will generate increased production, can be absorbed by the 
current market conditions. 
1.8 Appropriateness of Assumptions and Activities Relative to Operating Environment
This technique of transferring technology through the dealer community seems appropriate to the 
conditions. Farmers are in touch within their dealer community more effectively than any other 
communication source. Each dealer acts as a center of information in their neighborhood. This means 
that the project is funneling the new technologies through the dealer, whose self-interest is well served 
when he passes this to his potential customers—the input buying individual farmer. The project 
management has stated that dealing directly with farmers is not an efficient way to reach project goals. 
Many other donor humanitarian projects (IRC, CHF, ADRA, WVI and IFRC) have dealt and continue to 
deal directly with farmers, especially the subsistence type. The project management is convinced that 
only through building up the dealer in the community will they attain the sustainability desired in the end. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 7
1.9 Intervention Cost-Effectiveness 
Chart 4
The matrix below is designed to exhibit 
the results of an analysis of the spending 
allocations from the four interrelated 
activities of the IFDC project. Each of 
the four is shown along with the 
designations of separate activities for 
each. These activities match the results 
indicators found in the original 
proposals plus the addition ones 
reported in the first year report (see 
Tables No 1 and 2, Appendix J for full 
nomenclature of activities). As can be 
seen, the largest allocation is for 
technical training and the smallest is for 
association building. The projected versus actual is a calculation measuring the allocation of dollars with 
the units, reported in the results indicators. When viewing the results below, several comments must be 
considered. First, no feedback from the farmer (gain is at the farm level) is incorporated into the values 
presented, and secondly, no measure of the quality of the service is documented. Limited comments about 
the results are caused by the fact that no preset values have been supplied, so that an evaluation of actual 
versus projected on many of the items can be completed. There is no indication of what would be 
considered a prudent expenditure for each of the activities reported.
Costs per incident of each activity7
Business Development (I) Technical/Training(II)
Projected Actual Projected Actual
(1) Growth of Nu Firm Assets ($15775) $210.33 $175.28 (1) Sales of Inputs
(2) Sales of Inputs Fertilizer ($11283) $0.28 $0.23
 Fertilizer ($6134) $0.15 $0.12 Seeds ($11283) $0.003 $0.006
 Seeds ($6134) $0.003 $0.004 CPP ($11283) $0.005 $0,006
 CPP ($6134) $0.001 $0.003 (2) Farms Purch. Inputs $13.54 $8.46
(3) Farms Purchasing Inputs ($18403) $7.36 $4.60 (3) Product Differentiation $886.55 $372.35
(4) Number of Advocacy Tran ($18403) $920.15 $920.15 (4) New Agro-Input Prod. $7,447.00 $1,489.40
(5) Identify Clients ($18403) $184.03 $184.03 (5) Indiv. Apply Skills ($37235) $54.20 $41.93
(6) Prest of Proj Support ($18403) $1,533.58 $1,533.58 (6) Prod Dev Grades/Std $5,416.00 $601.78
(7) Tran Client Meetings ($36807) $575.11 $575.11 (7) Field Days Dealers ($33850) $112.83 $112.83
(8) Develop Business Plans ($26290) $2,921.11 $2,921.11 (8) Field Days Farmers ($20311) $101.56 $101.56
(9) Distr Storage Containers ($10516) $178.24 $178.24 (9) Written Media ($47390) $1,528.71 $1,528.71
(10) Coll/Public Market Info ($18403) $36.81 $36.81 (10) Television & Radio $1,269.38 $1,269.38
(11) Trade/Info Mission Ga. ($18403) $2,629.00 $2,629.00 Total: $338501 
(12) Arrange Input Imports 
 Fertilizer ($6,134) $51.12 $51.12
 Vegetable seed ($6,134) $102.23 $102.23
 Potato seed ($6,134) $81.79 $81.79
(13) Survey Dealer/Farmers ($26290) $105.16 $105.16
(14) Trade/Info Mission USA ($0) $0.00 $0.00
Total: $262902 
 
7
 Total budget allocation for the 15 months IFDC project operations were US$1,128,337 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 8
Costs per incident of each activity. 
Access to Credit (III) Association Building (IV)
Projected Actual Projected Actual
(1) Total Value Loans ($48204) $0.54 $0.22 (1) Rev. Covering OE ($27080) $27,080.67 $4,062
(2) Nu of Borrowers ($42177) $8,435.40 $1,622.19 (2) Know 1 Issue/Yr ($27080) $27,080.00 $27,080.00
(3) Self-Investment ($42177) $0.40 $0.46 (3) Conduct 5+ Adv Issues ($22567) $7,522.33 $22,567.00
(4) Conduct Workshops ($42177) (4) Nu of Training in Ad/OM ($33850) $4,231.25 $1,692.50
 Groups $5,272.13 $5,272.13 (5) Ass Organizing Meeting ($33850) $2,820.83 $2,820.83
(5) Conduct Workshops ($42177) (6) Signed Ltr of Interest ($22567) $352.61 $352.61
 Individuals $1,757.38 $1,757.38 (7) Assoc Council Training ($33850) 
(6) Conduct Mkting ($42177) National $2,820.83 $2,820.83
 General Principals $10,544.25 $10,544.25 (8) Assoc Council Training ($24824) 
(7) Conduct Mkting ($42177) Regional $4,964.80 $4,964.80
 Fertilizer $8,435.40 $8,435.40 
Total: $301266 Total: $225668 
Source: Consultations with COP & DCOP 
1.10 Follow-on Activities that Should be Considered to Maintain Momentum 
The momentum of this IFDC project seems high at this point. From the tone of the interviewees in the 
regions, a big success is anticipated in both the farm trial and demonstration plot experiments. The level 
of satisfaction with the results of networking using the association model also exhibits a very positive 
atmosphere. The dealer-clients have high expectations about the results of the trade/information mission 
just completed and they anticipate the next ones planned. They are hoping that they will be able to visit 
more advanced economies like in the EU and USA because they feel they gain an enormous increase in 
their level of comprehension of the new technologies and processes that they are being exposed to at this 
time. They expect little government help in the future, as the Ministry of Agriculture has limited 
resources and the major focus of the Azerbaijan government is fixated on the oil industry. With this in 
mind, they are excited about the prospect that the project is helping them develop a private extension 
service to help them transfer the new technology and new seed to the farmer customers. They recognize 
if farmers are doing well their business will be positively affected. They are satisfied with the advocacy 
training they are receiving at this time. I would suggest that lobbyist specialists be brought to deepen the 
scope of the advocacy agenda. The final marketing of the increased farmer output is not a direct issue for 
the project dealer-client, but in my opinion, many of these individual would become an integral part of 
any process that would expand the marketing of their customers’ output. Because of the derived demand 
and connection between final output and dealer selling of the inputs, a connection will be ensured. 
Therefore, the only follow-on activities that are needed are “more-of-the-same,” plus a focus on how to 
overcome the problems with sending missions to the more developed economies in the future. The 
companion farmer-marketing question might be addressed in the new RECP project or under some other 
project. 
2.0 Agriculture and Agribusiness
2.1 Opportunities for Improving the Agribusiness Sector’s Marketing, Volume, Product 
Quality and Business Skills 
The major opportunity for the agricultural sector of Azerbaijan lies with its ability to upgrade the quality 
of the agricultural production as it relates to consumer-level acceptance. In other parts of this work, the 
domestic consumer market has been characterized as fragile and imperfect. At first blush, it would be 
prudent to expand efforts to address this issue directly. However, it is this author’s opinion that a faster, 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 9
more efficient route exists. A bold approach might be to develop and establish a program to first identify 
(could research prior in-country competitive analysis and/or comparative advantage studies) the 
agricultural products that are now well accepted and/or competitive (e.g., apples, potatoes, tomatoes, 
cucumbers, etc.). Then initiate the process of applying grade standards, quality control (seal of quality 
program), better packaging, and better marketing skills (brand name selling) to bring the products up to 
world standards. If a product can meet world accepted consumer standards, it should simultaneously spill 
over and improve the arena for domestic marketing. We also will be able to penetrate world markets with 
a double score for our development investment. This approach should be considered, as the world 
markets are usually available if you have the right products. 
Increased trade also influences the volume, variety, and price of the 
food supply for Azerbaijan consumers. Money earned from food 
exports by agribusiness employees can be used to purchase other 
goods desired by the down-line, non-farmer consumer. International 
trade allows creation of an integrated market that is larger than any one 
country’s market and thus makes it possible simultaneously to offer 
consumers a greater variety of products at lower prices. It is also 
observed that trade plays a role in international diplomacy and foreign 
relations. It is often true that “two nations trading bushels and boxes are less likely to trade insults and/or 
bullets” (see Appendix I for more detailed explanation). 
2.2 Project Effectiveness in Capturing Opportunities to Improve the Agribusiness Sector
The steps to executing the above recommendation (an export training regime) have two tracks, one short￾term and one long-term. The short-term track is to expand the current activity, mostly selling commodity￾type product (apples and vegetables). However, because of the fact that the Russian, Turkish, etc. buyers 
are at the level of major distribution in their respective country (they are so-called barrier buyers, it is not 
in their best interests to buy value-added products; therefore the sale of value-added agricultural products 
must be developed in a second stage. 
The second track is to change the situation—Azerbaijan entrepreneurs must be helped to penetrate past 
these barrier buyers. After Azerbaijan entrepreneurs have developed their own value-added agricultural 
products, they can sell directly to the large foreign importers’ distribution systems, thereby, transferring 
the economic benefits of value-added sales to the Azerbaijan economy and not into the pockets of the 
large foreign monopsonist (single buyer). Improving the well-being of the dealer enterprises will have a 
large impact on the entire sector. If the project can increase productivity 8
 of the farmer, this will transfer 
not only to the dealers, but to other members of agricultural business sector. The concept of the “higher 
tide will lift all ships” holds true for this activity. 
2.3 Market Access for Products and Services Produced by Client Entrepreneurs 
The seasonality of farmer output has not yet been a major factor in the Azerbaijan agricultural sector, as 
abundant supplies have not created any major problem. However, market access by the farmer clients and 
thereby the dealer clients will depend on several factors: the suddenness of the harvests, the time until the 
next harvest, and the ability and cost of storage of the harvest. A dealer service might be to supply 
storage facilities to the region to address this possible constraint to market access. 
When we talk of products and services produced by client entrepreneurs, we are also speaking of the 
dealers supplying information (technology) transfer to the farmer client and the direct supplying of seed, 
 
8
 Productivity is simply the ratio between the amount of inputs used to generate an amount of output. 
Trade allows creation of 
an integrated market for 
consumers benefit. 
Greater variety of 
products
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 10
fertilizer, and pesticides. After interviewing many dealers in the countryside, I am convinced that the 
relationship between farmer and dealer is very strong. We have seen the IFDC posters and brochures in 
all the dealer offices visited. Under the old socialist system, the local agronomist was the farmer’s link to 
knowledge, but since the collapse in the 1990s, this link is currently with the dealer. Since the project 
objective is to train dealers to transfer these skills to farmers, the plan is on target. 
2.4 The Nature and Effectiveness of Assistance Provided to Entrepreneurs and Associations 
A major point that the IFDC project did not try to sell association building at the onset has already been 
mentioned. What was discussed was networking benefits and information technology transfer. After 
clients recognized the benefits, they were taught how to make this a coercive operation by forming an 
association (a natural self-evident conclusion). Many services are supplied to the dealers from the IFDC 
project. A review of Appendix F, which outlines the goals of the project, clearly outlines these services. 
Arranging and supervising trade missions and other information gathering activity and introducing credit 
sources are some core objectives. Executive training for council members has exposed the leadership to 
“Roberts Rules of Order” in order to teach them to operate a meeting without chaos. Other business skills 
such as marketing of inputs and accounting (gross margin calculations, balance sheets, income statements, 
and cash flow statements) need to be explained in terms of western-type approaches and not the way it 
was practiced under the socialist system. Additionally, other types of training would also have long-term 
benefits. Many services could be sponsored by the association for a fee. For example, the association 
might develop a system of transportation coordination (trucks and rail) for its members shipments; it can 
also develop a regional storage facility to serve the members’ storage and or warehousing requirements; 
however, this must be organized as a separate, for-profit entity which the association may partially own; 
and finally it might develop a quality control laboratory in order to certify a local “seal of quality” 
program for the “regional brand name” production. 
2.5 Constraints to Reaching Association Members 
Past association building activities have been frought with problems. Early in the decade, donor 
organizations provided grants to help organize associations. A father could be president, a son vice 
president; employees would be the other members and then would apply for a grant. Experience with 
socialist-time organizations (state owned or politically driven) has left the sophisticated entrepreneur wary 
(history is not conducive of success) of association building activities of the past. Once our members see 
that this is their association and that it can deliver what it is preaching, that old mentality will fade away. 
Under a democratic election regime, flexibility of members to vote out officers with unsatisfactory 
performance is implied. Success will be built on success as word of mouth about the activity of the 
association spreads throughout the region. This will be the best advertising that the association can use to 
recruit more members. 
2.6 Expanding Activities to More Fully Incorporate Association Member (Especially AMDA) 
The projected staff (see Appendix K) of the project will be expanded to take into account the perceived 
successes. The original staffing was for ten employees, namely, four specialists: Business Development; 
Association Development; Technical Training; and Credit Finance. Then six junior specialists, namely 
Media Public Relations; Administrative Assistant; Secretary; Events Manager; Secretary to Credit 
Specialist; and Driver. However, several adjustments were made to the plan. No driver was hired as no 
automobiles were purchased (only part-time drivers have been used). To address the demand, the project 
hired an additional technical training specialist, bringing the total to two. No event manager was hired, 
but instead the project hired one full-time coordinator located in Ganja region and a part-time coordinator 
in the Masalli and Ismailli regions to better serve the association members. On July 1, 2003, they will 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 11
hire an additional media specialist to handle television and newspaper public relations. A plan to acquire 
the LOL vehicle and driver will soon be executed. 
2.7 Effectiveness of Associations in Delivering Improvements in Agri-production, Productivity, 
Product Quality, Financial, and other Services 
This question cannot be adequately addressed until the results from the demonstration plots and/or the 
farm trials has been documented and analyzed. Early returns strongly indicate a great success is in the 
making. However, assessment of results (see Appendix M) caused by technology change or influenced by 
environment (weather) can create a variability problem from one crop result to another. There is no doubt 
that the IFDC project has and will continue to be a major driving force in improving productivity and 
product quality in the Azerbaijan agricultural sector. Financial services have met expectations but major 
problems exist for the medium-sized entrepreneur dealers and farmers. Storage is needed to smooth out 
the variations in the increased production generated by the new technologies under discussion. No 
consideration for this result is part of the IFDC project. Additionally, within several years of increased 
productivity, a surplus of production might appear that has the potential to drive output prices lower since 
a program of marketing agricultural output is not the focus of the IFDC project. 
2.8 The Role Business Associations Play in Agribusiness Development 
There are three major categories of activities in the operation of an association that the project has 
designed into its modus operandi: the networking function, the group advocacy function, and the 
education function. These functions all work together in an organization that will advance the level of 
efficiency of the small and medium sized agricultural entrepreneurs. A 
major point revealed to me during my interviews in the countryside 
was that after the collapse of the socialist system, all contact between 
individual businessmen was lost. Now, however, they have met each 
other and in number there is strength they have not experienced before. 
This new association will introduce a new ability for small and 
medium dealers, that being the ability to influence market outcomes in 
their advantage, also known as gaining market power. An important 
aspect of the association, not fully discussed at this stage of development, will be the possibility to control 
the flow of farm output product to market, which will be crucial to the short-term success of marketing. 
The association might develop the tools needed for controlling flow, e.g., storage facilities, transportation 
coordination, and grade and standard enforcement. 
2.9 The Main Areas on Which Business Associations Need to Focus 
The association, being member owned, must focus on its self-interests. In other words, it should act only 
in the interests of the group and not in any individual or group of individuals’ behalf. It can play a role in 
developing sources of input farm supplies, variation of input supplies, and, most important, competitive 
pricing of these input supplies. The fundamental focus of the association emphasis is skill building in the 
following subjects: advocacy, technology transfer, business training, bookkeeping, breakeven analysis, 
margin analysis, output bargaining and marketing, and enterprise management—all with a goal of 
improving the financial performance of the members’ own enterprises. It is important for the association 
to be flexible and be able to adapt to any changing needs of the membership to maintain their status as a 
representative of their alliance. Gaining and maintaining the confidence of the membership is an 
important role of the association leadership. The financial condition of the association will always spark 
conversation and possible controversy among members hence; another major focus must then be the 
frequent and timely publication of financial information, including the balance sheet. 
“In numbers there is 
strength they have not 
experienced before.” 
Association member
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 12
2.10 Political and Economic Representation of Project Assisted Associations 
The basic role of the association at this stage is to be the pacesetter (for new products and market 
services) and power balancer (advocacy activity and development of price bargaining units). The 
association must identify and have contact with the individuals at the Ministry of Agriculture and 
Economic Development and with the standing agricultural commission of Parliament. The association 
should invite these individuals to their meetings in order to impress upon them the size and effectiveness 
of the organization to flex any political muscle. As the Azerbaijan economy matures, the role of the 
association might be altered as it relates to advocacy. From just an advocacy role to solving common 
operating problems of the membership, a maturing role as an advocate for gaining economic market 
advantage over the potential larger buyers of the small farmer’s undifferentiated commodity output will 
evolve. In other words, the association might become a market bargaining unit so that farmers might 
receive the full potential of their value invested in the output, which reflexes in the pricing they receive. 
This activity can take on some special legislative requirements; thereby the association must rely on its 
strength and lobbying ability. Some simple steps on this path might be the development and sponsoring 
of market-intelligence activity, all the way to the more sophisticated and less free-market oriented 
collective bargaining and price negotiations. Many of these activities need action by legislative 
enactment. 
 
2.11 Overall Impact of Program-Assisted Associations/Enterprises on Agribusiness Development 
There is little doubt that the impact of AMDA project sponsored networking aspects of the association 
model has made giant steps forward in the dealers meeting and learning to work together. The level of 
exchange has been observed to increase because instead of all groups sitting together in small clusters as 
they originally did, they now mix together in seating and in conversing during the breaks. Additionally, 
the trade missions have been and will continue to be an important tool in increasing the combined 
knowledge of each region. Activity to increase production through productivity increases is the 
underlying target of the AMDA operation. However, the impact of not simultaneously targeting training 
and information of the essential points of marketing of agricultural output products, either domestically 
and/or globally, will create a decrease in the derived demand for the inputs. 
The overall impact of not addressing the marketing of farm output can negatively affect the success of 
increasing the use of farm inputs in Azerbaijan agricultural sector. The anecdote goes like this: The 
demand for most agricultural products, particularly farm inputs, is a derived demand. Derived demand is 
not based directly on general consumer demand, but rather on the need for a product that indirectly relates 
to consumer demand. For example, the farmers’ demand for (farm inputs) fertilizer, pesticides, seeds, 
technical knowledge, etc. is derived from the consumers’ demand for the end products (farm outputs). 
Anything that significantly affects consumer demand for agricultural products (outputs) is bound to have 
an impact on the demand for farm supplies of the rural entrepreneurs. Therefore, it is reasonable to 
assume that the “macroeconomic state of marketing” of agricultural products in Azerbaijani is directly 
related to the success of the project to increase the demand for farm inputs. Since the agricultural 
domestic market and/or global market for Azerbaijan outputs are characterized as fragile and imperfect, 
this will continue to act as a constraint on progress and effectiveness of the IFDC project. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 13
2.12 Business Development Activities’ Contribution to Improved Productivity and Access to 
Credit 
The development of business skills is critical for the success of any entrepreneurial activity. A problem 
faced by many small businesses is that they do not have the array of skills needed for success. For 
example, they are good at production and bookkeeping but poor in sales skills, or they are good at selling 
but poor at bookkeeping, or any combination you want to consider. The effectiveness of the association 
skill building is designed to offset this shortcoming and thereby improve the odds for success in the 
endeavor. To get credits, all three skills must be demonstrated as a prerequisite to receiving approval 
from financial institutions. One major shortcoming of the local business people is the lack of good record 
keeping. The problem is based in the fact that the tax authorities are ruthless and abrasive in their tax 
collecting activities. The result is that little record keeping is practiced by entrepreneurs. No job costing or 
other cost accounting is practiced and this hinders the application for credit activity. An array of business 
record-keeping skills improvement should be included in the training module. 
Additionally, other cost accounting analytic tools must be taught to better prepare our entrepreneurs for 
decision making. Training and volume-cost analysis and time value of money will help convince lenders 
of the competence of the business persons ability to control the results of their activity. 
2.13 Enhancing Business Development and Training to Improve Productivity and Access to 
Finance
One major tool used by a financial analyst when reviewing an agricultural enterprise is the tool of break￾even analysis. If the evaluator can determine this break-even data, he will have the ability to assess the 
risk and probability of the enterprise paying back and/or servicing its financial obligations. This tool 
should be encompassed and emphasized (highlighted) in the module of “business plan writing” in any 
management training seminar provided to the Azerbaijan entrepreneurs. 
Additionally, ethics in business dealings should be included. The exposure to democratic business 
dealings to Azerbaijan entrepreneurs of business practices requires that a certain level of ethic training be 
provided. Adam Smith, the father of capitalism, preached that participants in a free market should do 
only what is in their own best interests; however, he also meant under good moral ethic standards. He 
recognized the need for government to manage a legal system to provide this protection. The legal 
protection (contract-law and anti-trust law) provided to market participants in the current environment is 
not sufficient and hence we are obligated to teach business ethic principals to our new entrepreneur 
clients. 
2.14 Effectiveness in Tracking The Progress of Client Entrepreneurs 
The activity of tracking the progress of the project clients seems to have some problems. In the 
Azerbaijani prior socialist environment, accurate voluntary reporting was limited. Entrepreneurs are so 
frighten by the possible tax authorities finding out about any successes -- so they can extort more taxes or 
worst extort unauthorized payment. Many entrepreneurs do not allow their names to be associated with 
any TV stories for this same fear. The project personnel solicit voluntary sales information, but detailed 
financial results about the businesses would be more difficult to extract. However, we have a macro-type 
result indicator that measures the confidence of our client-dealers, namely the self-investment number. If 
it rises, we have a suggestion that things are going well and the future look bright. The stated results 
indicators do have the ability to assist in tracking progress, however very little has been done to create 
goals for which these indicator are supposed to measure progress. Is this the IFDC project fault or might 
it be a project design mechanism flaw? The approach to measure progress is flawed without the creation 
of benchmarks when assigning the result indicator to a project. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 14
2.15 Effectiveness in Facilitating Client Entrepreneurs Access to Finance 
 A major impediment to obtaining credit has been and continues to be the unwillingness of entrepreneurs 
to fully disclose their financial state on credit applications. Harsh collateral requirements are also a 
constraint. A 200% collateral is needed, along with a second business/source of income, and finally only 
short-term financing is provided, which must be paid back after harvest and never exceeds 1.5 years (18 
months). The project has addressed this liquidity problem with the smaller players through association 
with CREDAGRO the ACDI/VOCA activity; however, larger clients of the project are unable to finance 
the storage and/or processing capital spending aspects of their increased production and the flexibility 
needs that are associated with enhanced production. Some special loans have been available from state 
banks at an attractive interest rate (7%); however, biased interests have limited the availability to a slim 
group. 
2.16 Effectiveness of Assisting Entrepreneurs in Applying Newly Acquired Management, 
Marketing and Business Skills
The only marketing training being provided to the dealer association member is the general principals of 
marketing and the specifics of marketing the inputs. The author’s understanding is that the IFDC program 
has no mandate and therefore does not directly address any marketing of farmer outputs. This issue has 
been discussed elsewhere in the work and needs to be addressed in a strategic plan for the whole 
Azerbaijan agricultural sector. In the author’s opinion, an advancing of skills in marketing of farmer 
outputs will be the most important key to the long-term success in the improvement of the medium and 
small entrepreneur the mission is committed to support. 
The management and business skills training have been more then useful, but less dramatic to the 
entrepreneurs then the trials and demonstration plot results. It is easy to see the plot and farm trial 
physical changes but much more difficult and less dramatic to visualize an update in accounting or 
management techniques. The modus operandi of the project is to direct its efforts to the dealers only. 
This strategy is based on the idea that the dealer is a more sophisticated entrepreneur than his farmer 
counterpart. The ability to absorb and implement the new technologies offered seems to have a higher 
probability of success through the dealer to the farmer than does going directly to the farmers. The 
efficiency of using the dealers to funnel the information about new technology in production of farmer 
outputs seems to be significant based on interviewee comments. 
2.17 Field Demonstration Project’s Relevance to Real World Farmer Problems (AMDA only)
This, in the author’s opinion, is the root for the success of the IFDC project. The transfer of technology in 
the case of drip irrigation, greenhouse growing, fertilizer use, pesticide use, and proper seed selection can 
show near immediate physical results. Farmers can quickly see the plants growing strong and healthy, the 
fruit abundant. They can quickly determine there is no doubt about the success of the results. This also 
holds true for the farm trials as well. I suspect the results will be less dramatic, as the nature of farm trials 
is that farmers are in control of operations (see Appendix M for questionnaire to be completed by 
participants). This image of physical changes is the foundation for the level of excitement being 
expressed about the IFDC project. These field demonstration techniques directly address the core 
principles of the project premise, namely knowledge transfer, productivity increases, improving gross 
margins, providing choice-making information, and finally teaching that farming is a business and not an 
art form. The upcoming field day (held at each plot at harvest) activity will be the culmination of all 
these ideals. Farmers will come from all over the region to see and share the results and then be 
convinced that the techniques and use of the inputs would be in their own best interests. This information 
will be taken home and possibly shared with their neighbors who did not travel to the demonstration plots 
or see any farm trial results. Word-of-mouth advertising has been known to be a very powerful tool in 
information distribution. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 15
3.0 Adoption of New Practices 
3.1 Beneficiaries’ Adoptions of Recommended Practices 
There was such excitement about the tentative results from the farm trials in wheat (using TSP) that 
dealers found TSP and purchased and sold to farmers on their own, so that we have 230 farm trials in 
wheat. A questionnaire was developed by the project (see Appendix M) and will be gathered from the 
farmers after harvest in August 2003. Additionally, results of limited apple trials from last season showed 
dramatic increase in yield and quality. An orchard grower was so excited he convinced his sons and other 
relatives to implement the new inputs. He appeared on local Television several times, including a 30-
minute presentation in order to spread the word.
3.2 Types of Practices Adopted By Beneficiaries 
An interviewee commented to me that he had a dream to install drip irrigation technology but that until 
now he was unable to do so. The IFDC project has allowed his dream to come true. New green house 
technology will also be introduced in this region during the second half of 2003. Many of the dealers and 
farmers were very excited, as they feel that greenhouses would give them a competitive advantage over 
the Iranian imports that are negatively affecting their markets. With this new technology, they can 
produce an early crop and take advantage of the good growing season from January until April. 
3.3 Program Modification to Maximize New Practice Adoption Rates 
The project has identified that the results of the trials and demonstration plots will be remarkable. It has 
decided that on July 1, 2003 it will add a specialist in television, radio and newspaper public relations to 
its Baku staff. This will definably add to the adoption rate of the new technologies being discussed. An 
ST Israeli consultant specializing in greenhouse and drip irrigation technology will be making more 
regular visits and will be staying for longer periods of time. Additionally, they plan to extend the open 
field day program to allow for additional viewing by the local farmers. Trade/information missions to 
surrounding countries will promote the exchange of information; however, a program that should be 
considered is one that would promote more exchange visits between districts to enhance the transfer of 
information within Azerbaijan. These inter-regional trips should be continued and expanded in scope. 
3.4 Primary Source of Information Concerning Business Practices 
The project has been supplied information from several sources. They include short-term consultants, 
local experts, and staff specialists. The records show that during the Soviet era, Azerbaijan agriculture 
was using 700,000 tons of fertilizer. Is the goal of the project to reach this tonnage? The answer is no, as 
much of the fertilizer was spread by inexperienced farm worker teams—information indicates that much 
of it was wasted in irrigation ditches. Therefore, that information source is inaccurate. We will be 
attempting to maximize the efficient use of fertilizer in Azerbaijan, which would be a number much 
smaller than 700,000 tons. Primary source of yield information will be coming from the farmers 
themselves; however, this also is suspect data. The project will rely only on data collected during the 
farm trials and plot demonstrations when analyzing any operational results. The financial record keeping 
for the enterprises we are assisting is also difficult to collect, even if it has been created. Hence, the use of 
this kind of data to compile results indicators could also generate inaccurate and unreliable measurements. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 16
3.5 Other Key Channels of Business and Technical Information 
The use of printed matter (see Charts 5a, 5b, 5c), as explained elsewhere, is the major source of data for 
technology transfer. The project has done an excellent job in preparing the documents. Many 
interviewees commented on the value of these take-home instructions 
on how to implement the new knowledge. The essence of the strategy 
is “NEED STRONG INFORMATION LINKS BETWEEN DEALERS 
AND FARMERS.” The model in which the dealer is the main 
information link with the farmer will have strong benefits for the 
success of the project goals. This is a compelling approach to develop a private extension service where 
there is little chance for a public service to exist. The project staff has taken great pains to explain to the 
dealers that they will be the exclusive distributors of the printed matter. The project has no plans for any 
mass distribution directly to farmers. The project theorizes that if dealers affix the information transfer 
with the selling of the inputs (included in the price of input), this should build a strong private extension 
service for the farmers and reinforce the information link between farmer and dealer. 
3.6 Client Satisfaction with the Quality of Technical Assistance Provided 9
At this time the number of training sessions has been described as more than adequate. Based on the 
records, an average of 1.5 meetings per month has been accomplished in all the regions under IFDC 
project purview. It was explained to me by almost all interviewees that the project and Azerbaijan input 
dealers are in a “marriage” environment. Currently they are on their honeymoon and neither can find 
fault with the other. No dissatisfaction could be expressed—at this time we have 110% satisfaction. It 
was expressed that more training should be provided in the future for (value-added) manufactured 
finished products that use agricultural output as raw materials. Some products suggested were potato 
chips, French fries, and starch products. 
4.0 Business Association Development and Capacity Strengthening 
4.1 Overall Progress and Approach to Association Development
The association model employed by the project has been a well-tested approach in the developed world. 
It can be a powerful tool in the developing world as well. The model allows us to address gaps in market 
information and production technology, and it allows the development of skills that create linkages with 
markets. It creates an environment for strategy meetings and training and has the ability to build up the 
sector to critical mass in order to facilitate changes in the individual entrepreneur’s behavior and 
activities. Concern has been raised about the relationship of the project goals to the association structures. 
The current experience is to lead the participants into organizing an association of their own. The project 
attempts to minimize the project input on such areas as the writing of by-laws. Effectually, the project 
has little interference on the election of leadership. The association members themselves have conducted 
the elections under democratic principals under by-laws that are self-generated. Several points have been 
discussed that suggest that prior government officials seem to generate themselves into the leadership of 
local associations (this may reflex their leadership skills developed during the Soviet era). In the project 
staff discussion of alternative choices in the development of by-laws, elections might be held every year, 
or every two years or even every three years. If dissatisfaction with leadership appears during the term of 
office and the election period is too long, loss of membership occurs faster than if elections are held every 
year and members knew they can vote out the unacceptable leadership. This is a subtle point, but when 
trying to develop sustainability in the structure of the association, the flexibility of changing leadership is 
an important element to consider. 
 
9
 Question 3.6 & 3.7 were similar and answered as one. 
Need strong information 
links between dealers 
and farmers. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 17
4.2 Effectiveness in Developing Association Capacity to Effect Change in Agribusiness-Policy 
and the Regulatory Environment 
The effectiveness of the association building is not materially affected by the lack of official recognition. 
The process of greater “grassroots” involvement is being enhanced because of AMDA activities to date. 
The process of teaching the agribusiness leaders the need, value, and importance of having an industry 
trade association has begun in earnest, and the concepts are well received. Advocacy, being a major 
advantage of organizing into an association, has already experienced some success in Azerbaijan. Three 
recent events, namely 1) the institution of price support for wheat; 2) the authorizing of ice cream sales on 
the streets of Baku; and 3) the reduction of state licensing from 280 activities down to 30 activities (about 
10% represent agricultural activities) all indicate the power and potential success of advocacy in 
improving coordination of issues between Ministries and the private sector. Although acknowledgment is 
not credited to AAIDA directly, its new president spearheaded the wheat support legislation. The need for 
advocacy also will be important if a program for increasing exports of agricultural outputs is investigated 
and implemented. Additionally, environmental regulation is not a current problem, but given enough 
time, the agricultural sector will find itself at war (pesticide management) with the environmental lobby 
and will need strong advocacy relations with regulators. 
4.3 Strengthening Associations’ Advocacy Capacity 
Experience has shown that the beginning technology transfers are well accepted, but once the local 
entrepreneurs have exhausted the ability to finance and/or implement additional technologies, they will 
lose interest and association sustainability will be jeopardized. At some time in the near future, the project 
should embark on a program to bring lobbying-type technique training to the association curriculum. 
This type of training will prove to be the most important sustainability issue for the association once the 
initial technology transfers have been completed. The issue concerning registration will hinder dramatic 
growth in new associations but should have limited negative impact on growth of AAIDA. 
4.4 Appropriateness of Approach in Organizing Associations to Serve as a Forum for Agri￾Policy Dialogue with the Government10
Dialogue with government authorities is a major element of advocacy training. The members of the 
association share their experiences and as a group will be more successful than just one individual. For 
example, many members have had severe problems at the border crossings with the customs agents. 
Individually, they have little hope of launching reforms. However, a study might be commissioned by the 
national association (AAIDA) to investigate, study, and document the number and length of time 
members’ trucks have been delayed over a specific amount of time. A document that explains the 
problem and correctly certifies the number and length of each incident of the many members will be hard 
for regulators to ignore. Additionally, this study can be given to the national press as an exposé to any 
wrongdoing by official government personnel. This can also put pressure on elected officials to step in 
and correct the abuse. In other words, long-term results will add up to change. 
 
10 Question 4.4 & 4.5 are similar, therefore 4.5 was collapsed into 4.4. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 18
Leaflets
0
500
1000
1500
2000
2500
Soil sample test
Fertilizers effective use
Winter wheat technology
Phosphate fertilizer
Wheat variety
Potassium fertilizer
Potato planting technology
Determination of seed rate
Tomato trial
Carnal burnt
Apple trial
Urea
DAP
Soil preparation
Apple technology
Apple pest and diseases
Pesticide safety use
Diseases of Potato
Pest of Potato
Alfalfa technology
Cabbage technology
Tomato technology
Subject
Distributed
4.5 Appropriateness of Training Materials and Marketing Information Supplied by the 
Implementer 
Chart No 5a
Marketing training for 
general principals, and 
specifically for fertilizer, 
has been instituted. The 
LOL newsletter is being 
published as a step toward 
information gathering and 
dissemination. However, 
a more comprehensive 
publication, which includes 
the output pricing and 
volume data, would be 
needed for the ultimate 
success of IFDC’s market 
information and dissemination 
goals. See Charts 5a, 5b 
and 5c, which display the 
array of publications and 
the amounts distributed in the project activity. 
Chart No 5b Chart No 5c
Brochures
0
200
400
600
800
1000
1200
1400
1600
Pest and
diseases on
Wheat
Potato
technology
Pest and
diseases on
Potato
Fertilizer and
their effective
use
Pesticide
safety use
Alfalfa
technology
Maize pest and
diseases
Subject
Distributed
Posters
0
200
400
600
800
1000
1200
Pest and
diseases on
Wheat
Pest and
diseases on
Potato
Fertilizer
recom m endation
C rop Rotation I
Crop R otation II
Crop R otation III
C rop R otation
Veg.
Subject
Distributed
5.0 Sustainability Issues Relating to Recommended Practices
5.1 Sustainability of Project Outcomes 
Most of the technology transfer information on the proper use of inputs is rather timely and can be readily 
absorbed. There should be a large response to the new input technology, as the current level of 
production is rather low. However, once the easily implemented technology is presented, we will find that 
resistance (the notion of diminishing marginal utility) to further, more advanced implementation will be 
encountered. Technologies that require extensive capital outlays will be impeded by the weak financing 
environment. Without a companion program for increasing markets, the oversupply of outputs might 
drive output prices lower, thereby reducing margin and negatively influencing agricultural sector income.
Lessons learned from the past indicate that if too short a time elapses before project support ends for 
association building, many advisories to farmers that are fee-based cannot be sustained. For example, the 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 19
farmer gets technical information for a fee, and he acts on it and improves the cash flow. Then the limits 
of the cash flow and or technical knowledge beyond his implementation level prevent him from seeking 
additional fee-based knowledge, and past program-supported information center cannot be sustained. 
This means that premature withdrawal of financial support could cause the association to disintegrate. 
5.2 Most Likely to be Sustainable Adopted Practices 
Several fertilizer combinations have been tested on the demonstration plots, and most likely the TSP will 
be the type most accepted in the Azerbaijan agricultural sector. This is because dealers and farmers have 
now been trained to the notion that quality in the input will affect the final yields in the output product—
namely that the amount of active ingredient content per money spent/ton between alternative fertilizer can 
be compared and they can compute the truly most competitive purchase and not just compare the absolute 
prices. The basic practice of setting up demonstration plots as a selling tool should also be adapted by 
the dealers as a convenient and effective merchandizing tool for selling inputs. The new drip irrigation 
technology also has great promise (both as a moisture dispenser and as a fertilizer distributor). The newly 
introduced (latter second half 2003) greenhouse technology is highly anticipated by southern region 
dealers. Its adoption would generate an early crop which would be highly competitive with Iranian 
imports. After reviewing several demonstration plots for several different products, e.g., apples, 
cucumbers, and kiwi, it is obvious that this technology will be sustainable after the project is ended. A 
conversation about the new affordable greenhouse technology for tomatoes and cucumber production will 
be well accepted by the regional farmers visited. Finally, the introduction of various varieties of 
commodities has been accepted as a step for progress. Substantial variation in yields is projected for 
potatoes from Germany and the Netherlands, as compared to current varieties now used. 
5.3 Least Likely to be Sustainable Adopted Practices 
The use of the fertilizer sulfur potas, a/k/a K, will be a least likely to succeed candidate, as TSP seems to 
outperform. Not all the new varieties introduced will be accepted. An educated forecast by project 
personnel indicated that only 70% of the new seed introduced would be implemented. 
5.4 Options to Increase Sustainability of Adopted Practices 
An option to be considered is the time used in finding competent local expertise. It has been expressed to 
me that if excessive time is spent at the beginning of a project to staff the countryside operations, the 
project loses in the long run. If countryside activities are the backbone of the project’s end goals, the time 
wasted in searching for local expertise is very valuable. The result of this conversation should be that 
COPs should be encouraged to fund and implement their countryside operations as quickly as practicable 
and the project will benefit in the long run. Another new option would be to contract local private 
research to develop viable market information (local/wholesale prices and quantities) to be broadcasted 
and/or published back to the project dealer clients. A current media organization could be solicited and 
trained to collect and publish this content as a private profit center. This would improve a sustainability 
option for market information dissemination after the project leaves. 
If a new project would implement a program to develop and install grades and standards, quality control 
(seal of quality program), and marketing training, the sector would be able to sell the increased output at 
equitable prices (covering farmers’ average total costs, ATC). The resultant effect would be to sustain the 
use of newly introduced technologies and inputs as farmers increase production. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 20
5.5 Long-term Likelihood of Client Enterprises and Associations to be Sustainable 
Client enterprise sustainability will be based on a simple fact, that being, “Will the operating margins 
cover the average total costs, ATC, and leave a profit?” If the farmer output is cleared away at prices that 
cover the farmers’ ATC, sustainability of the dealers’ marketing of inputs is assured. The author’s 
opinion is that the IFDC project will be extremely successful. Without the companion marketing project 
for the farmers’ increasing production, within a very few years a financial crisis for the Azerbaijan 
agricultural sector will be in the making. 
Association sustainability is a major concern of the IFDC project staff. A major emphasis of the business 
training is the subject of association stability. It is easy to understand that an organization needs revenue 
to operate. Dues are usually the major source of revenue. A strategic manual is being prepared by the 
project staff to be used for the association local management. Part of the manual will outline and specify 
services-for-a-fee listing, which will add to revenues. The ST specialist from Iowa discussed a litany of 
ideas used by his organization in order to boost revenue. He explained such schemes as selling booth 
space at an association sponsored exposition type event or strategic collaborating with organizations 
(insurance, cell phones, etc.) that want to sell the membership and/or their relatives’ products giving a 
special discount. 
5.6 Current Number of Operating Client Enterprises and Associations 
The best forecasts from the AMDA staff inform that there are, as of this writing, 75-90 dealers to be 
members in the National Association (Azerbaijan Agricultural Input Dealers Association, AAIDA), an 
umbrella organization with five separate Regional Chapter (15-25 members each). Project personnel 
estimate the number of farmer clients represented by this group at 8000 at this time. The Azerbaijan 
agricultural sector has three components of interest to the IFDC project: importers, wholesalers and 
retailers of input products. Part of marketing theory is a theoretical structure of the market that helps 
estimate the number of possible users of new ideas. In studying the market, it is useful to divide it into 
five groups: the innovators11, the early adaptors12, the early majority13, the late majority14 and the 
laggards15. Based on the official statistics published in the government yearbook for 2002, there are 
814,000 farm families; using only innovators and early adaptors, 122,100 families are likely to accept the 
technology transfer promoted by the project. If these farmers were represented by one dealer for each 100 
families, it would yield 1,221 dealers. Then let us assume that the dealers are more progressive 
individuals and that the innovators, the early adapters, and the early majority—a 49% of this market—
would yield a potential market of dealers to be about 550-600 dealers in Azerbaijan who would eventually 
participate in the activities that the project is promoting. However, this figure must be tempered by the 
fact that the project is operational in only 11 of the 64 districts of Azerbaijan. 
 
11 The Innovators are venturesome people who like to try new ideas. They represent the first 2 ½ percentage of the 
marketplace to try a new idea, product, or service. 
12 The early adaptors are responsible producers or consumers who adapt to new ideas quickly, but with caution. 
They represent the next 13 ½% of the customers (after innovators) to try out a new idea. They are also opinion 
leaders in the community. 
13 The early majority are deliberate people who see themselves as progressive, but not generally as leaders. This 
group represents the next 34% (after the early adaptors) to try a new idea. 
14 The late majority are skeptical people who adapt ideas only after convincible evidence has been shown. This 
groups represent the next 34% (after the early majority) to accept a new idea. 
15 The laggards are tradition-bound people who take so long to adapt to new ideas that by the time the ideas are 
adopted, they no longer are new. This group makes up the final 16% to accept a new idea. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 21
Chart No 6
5.7 Client Leveraging of USAID Support Through Other Donors 
A major collaborator with the IFDC project has been ACDI/VOCA, along with their affiliation of 
CREDAGRO. As previously reported, the project clients have acquired 26 loans totaling $218,500, a 
243% increase over original projections. There has been discussion about loan possibilities using World 
Bank facilities, but no case has been documented. Additionally, the BP private organization has 
discussed some interest in funding projects that are within four kilometers of any pipeline. However, a 
discussion with their project coordinator by the LOL evaluator indicated that they are now mostly 
interested in oil type projects, not agricultural. 
The market information newsletter produced in collaboration with the now closed down PAPA project is 
planned to be continued by IFDC. The individual that managed the operation at PAPA will be on the 
IFDC staff starting July 1, 2003. This individual will not only be the second media staff specialist 
(television and radio) to handle public relation issues, but could generate the newsletter if needed. 
Another opportunity for collaboration is with the new Peace Corp initiative. With many volunteers 
stationed directly in the villages, an opportunity to develop coordination with the IFDC project will exist. 
Consultations between Peace Corp and IFDC project staff and ACDI/VOCA could create these new 
synergies. 
5.8 Association Membership Dues and Fees
As stated previously, the AAIDA dues have been voted and accepted to be $30 per year. Additionally, a 
fee schedule of services is being prepared for collecting supplementary revenue. Since the association is 
not federally registered, it cannot open a checking account, so project staff is administrating the funds. 
The current balance on hand is $2,300 collected from fees paid by members for trip to Georgia, storage 
container purchase, etc. The actual dues collection process has been decided to start July 1, 2003 and will 
be collected by the local leadership from each region. Many members told me that the value they are 
receiving has been well worth any dues they might be paying. The IFDC staff seems focused on not 
“spoiling the child” and makes a concerted effort to have the association operate on a “stand on your own 
feet” basis. 
6. 0 Monitoring and Evaluation
When analyzing the Burn Rate data in 
Chart 6, it is obvious that the most 
important number is the TOTAL COST 
sum for the 15 months. This number 
shows that it is negative 14.9% of the 
proposed budget expenditures. The COP 
explains that the project has gotten off to a 
late start due to the registration issues. 
Hence, the activities will be at a faster 
pace in the future than has been the case. 
The negative 43.7% under spending in 
equipment is also related to the 
registration issue. The delay in vehicle 
purchases (which is now progressing) will 
mitigate this issue. The 23.5% increase in travel, according to the COP, is simply an underestimation of 
the costs at the proposal level. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 22
Chart No 6 continued
As an individual with some auditing 
background, I find a category of OTHER 
as a lightning rod for problems. Over the 
life of project in this budget, this item is 
enormous—$736,700 (see Table 3, 
Appendix J). The COP explains that five 
important items encompass this category: 
1) ST consultants; 2) Expatriate advisers; 
3) Total training; 4) Headquarters support; 
and 5) In-country office operations. The 
group shows under-spending of 59.1%, 
mostly due to late starting according to 
COP. 
In the opinion of this reviewer, a budget 
item of OTHER, or normally identified as 
miscellaneous, in the amount of $736,700 
would not be well perceived by the 
American taxpayer. It would be prudent for the budget line item of OTHER to be replaced with the actual 
five categories. 
6.1 Achieving of Project Targets
Three basic steps in the control process—setting standards, appraising results, and corrective actions 
when needed—cover the essence of monitoring and evaluation theory. When the project was conceived 
and designed, a list of evaluation indicators was incorporated in the proposal (see Listing in Appendix J, 
Table 1). In addition, most indicators were assigned a certain value to be attained each year of the project 
life. This is consistent with the methodology of the “setting of standards” portion of the theory. In other 
words, this provides some comprehensive controls that consolidate and summarize large blocks of 
detailed activities. 
The next step of the theory is the “appraising results” portion and is usually considered the most 
important management control element. This control exercise is designed to have a system to measure the 
consistency and performance of the goals established in the early stages of the project cycle. Critical to 
this monitoring regime is the fact that the project reports its progress under the same terms as were laid 
out in the proposal; otherwise evaluation of apples verses oranges will result. This problem is not unique 
to the IFDC AMDA project as even the Department of Commerce has a difficult time trying the keep the 
CPI market basket consistent enough to measure across time and still be able to make adjustments to have 
it represent reality (which is a moving target). 
In analyzing the documents as the evaluation progressed, the essence of consistency was compromised in 
the first year report. There were 16 result indicators outlined in the project proposal (see Table 1, 
Appendix J) but only the results of 9 were reported. However, an additional 26 other criteria were 
introduced and reported (see Table 2, Appendix J) with no reference to any preset earlier quantitative 
expectations. It is difficult to understand how oversight can be completed without a comparison between 
the preset targets and the project’s reported result during the period under review. Another point was that 
quantitative tracking on a quarterly basis would improve management’s ability to steer activity more 
productively. The evaluator finds a lack of qualitative and quantitative data a constraint to the evaluation 
of the mid-term analysis. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 23
6.2 Quality and Reliability of Performance Indicators 
Performance indicators are measuring the activities directed to the agri-input dealers in areas such as 
knowledge transfer (groups and individuals), economic growth, loans taken, and association established. 
All indicators are the four intervention areas: association building, access to credit and finances, technical 
training, transfer and private extension systems, and business development originate directly from project 
information. They are verified true and correct as could be experienced during the field trips. 
Indicators measure the services delivered by the project as theoretically described in the project proposal. 
The direct target groups of the project are the individual input dealers and the agri-input dealers 
association. Although financial data are hard to come by (building trust relationships takes time), 
performance indicators express qualitative aspects of work delivered. The issue of indicators with no 
targets seems to degrade the whole process of looking at the indicator to measure performance of the 
project. 
However, the project impact is far beyond the increased numbers of inputs sold by dealers. The larger and 
indirect target group is the farmers applying transferred knowledge thereby increasing productivity and 
quality of production. To empirically survey data from estimated 8,000 farmers affected is beyond the 
capacity and mandate of the project. 
The same applies for selling of inputs in regions where the project is not active. Macro economic and 
aggregate data from customs office for imports or the annual statistical data from the Ministry of 
Agriculture are not reliable but rather describe the tendency. This includes regional spillover effects to 
either neighboring districts or information given to other donor and USAID projects working outside 
AMDA project area which are difficult to measure. The measure of assets of client organization by 
changes in the number of employees seems counter productive. We are in the business of promoting 
competitiveness through productivity increases. What if employment increases do not reflect added labor 
consistent with added output, but just excess labor. Then a labor measurement would be inconsistent with 
the productivity increase. Would it not be better to have an indicator which emphasizes competitiveness, 
such as marginal analysis on revenue per employee changes. 
6.3 Use of M+E Data and Anecdotal Information by Project Management 
Agriculture is a seasonal activity. After one year of project operation, the first monitoring and evaluation 
data are just being collected or are about to be collected, such as the fertilizer on farm trial with 230 
farmers in August 2003. The seasonality of agricultural production can be influenced by so many factors, 
which do not allow, after one year, to provide sound and reliable data on M+E activities. What can be said 
is that responses by dealers and farmers focus on vegetables, fruit trees, potatoes, and wheat. Where data 
is already available, such as in 2002 apple production, a success story has been compiled and given for 
publication by both USAID Office Baku and IFDC headquarters. The apple demonstration has created so 
much attention that the local TV station not only broadcasted the field demonstration, but moreover 
invited the apple orchard owner to give a 30-minute presentation. 
As soon as M+E data are available from field demonstrations and other project activities, these will be 
given attention by project management for publication. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review 24
6.4 Options to better utilize M+E Data and Anecdotes Information by Project Management 
According to the conversation with the COP during project year two, more attention will be paid to 
documentation and publishing of successful activities. Until now this has been done through weekly and 
monthly articles in selected printed media. In project year two, preparations are under way to promote 
technical recommendations and project activities via radio and TV. In addition, a discussion with the new 
RECP project starting in the second half of 2003 is planned to collaborate and develop publications for 
agricultural commodities. Moreover, the production of an agriculture calendar for 2004 is in process, 
according to conversation with COP. The calendar will display technical information at monthly level, 
along with project activities. 
The evaluator’s overall concern still lies with the fact that very little “appraising results” can be 
accomplished if no credible qualitative goals are in place. It is difficult to assess a dimension of success 
without these markers, for project management, outside evaluators, and USAID itself. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review
Appendices 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review A-1
Appendix A Evaluation SOW 
STATEMENT OF WORK 
Evaluation of PAPA and AMDA Programs in USAID/Caucasus-Azerbaijan 
This evaluation will examine two activities being implemented under USAID/Caucasus-Azerbaijan’s 
Strategic Objective (SO) 1.3, Accelerated Development of Small and Medium Enterprise. These activities 
are: Participatory Agriculture Project in Azerbaijan (PAPA) and the Agro-Input Market Development in 
Azerbaijan (AMDA). 
I. PURPOSE OF THE EVALUATION: The principal focus of the evaluation shall be the 
performance of PAPA and AMDA activities in accomplishing the terms and objectives of their respective 
Cooperative Agreements and their contributions in achieving the Mission’s Strategic Objective 1.3. 
Evaluation of the AMDA program will help assess how the program is being implemented in order to 
identify areas of improvements and possible mid-course corrections, whereas evaluation of the PAPA 
program will help assess program impact on the well being of the targeted population. 
The evaluators shall determine the status of the current activities, their successes and weaknesses, and 
provide recommendations for USAID regarding possible improvements and adjustments that might 
enhance the future performance of AMDA under the current Cooperative Agreement. The evaluators 
should also identify any unforeseen constraints and obstacles that may have affected PAPA and AMDA 
performances. The evaluation should assist USAID/Caucasus-Azerbaijan to formulate ideas regarding 
future support to agriculture and agribusiness development in Azerbaijan, including, but not limited to 
Rural Enterprise Competitiveness, Agriculture Marketing, Rural Community Business Development 
programs. In this regard, the evaluators should provide the Mission with a better understanding of the 
current overall environment for the development of agriculture sector in Azerbaijan, the sustainability of 
current efforts, and, may provide recommendations for future interventions in the agricultural sector. 
 
Brief description of AMDA and PAPA programs is attached in Annex 1. 
II. QUESTIONS AND ISSUES TO BE ADDRESSED: 
The evaluation team should address the following questions and issues:
1. General: 
a) What interventions are most critical and/or have been effective in achieving program objectives 
and intermediate results? What improvements can be made in program implementation in 
order to enhance the results? Are there opportunities for integrating program components that 
could result in greater program impact? 
b) Are there any unexpected but important benefits or impacts that should be documented? Are 
there any negative impacts or unintended consequences of the program that need to be 
addressed, and how? 
c) Are planned activities appropriate for improving agribusiness development in the targeted 
areas? Do the assumptions and program design (activities) match the sector conditions and 
policy environment? 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review A-2
d) How cost-effective have the interventions in the two activities PAPA and AMDA been? Are 
the targets/results/impacts accomplished to date commensurate with resources invested? Are 
there follow-on activities that USAID should consider to maintain the momentum? 
2. Agriculture and Agribusiness: 
a) What are the major opportunities for improving the sector? Improving marketing, increasing 
sales volume, improving the quality of produce, building business skills etc.? Does the 
program take adequate advantage of these opportunities? 
b) Is there a reasonable market access for products and/or services produced by the program￾assisted rural entrepreneurs? 
c) What was the nature of assistance that was provided to rural entrepreneurs and trade/business 
associations supported by the two activities and how effective such assistance has been? Are 
there specific constraints to reaching some business association members? How could the 
activity (especially AMDA) be broadened to more fully incorporate these business association 
members? 
d) How effective the business associations have been in supporting their members in the following 
areas: improving agricultural production, improving productivity and product quality, and 
providing other services (e.g. access to finance etc.)? What role the business associations 
played in agribusiness development? 
 What are the main areas on which business associations need to focus? How representative are 
these business associations, both politically and economically? 
e) Assess the overall impact of these program-assisted business associations/enterprises on 
agribusiness development in Azerbaijan? 
f) Have business development activities and training tailored to individual rural entrepreneurs 
needs contributed directly to improved productivity and business skills, and/or improved access 
to finance. Are there ways to enhance the impact of business development and training 
activities in improving productivity and access to finance? 
g) How effective have AMDA and PAPA been in tracking the progress of rural entrepreneurs, in 
facilitating their access to finance from various sources, and assisting the entrepreneurs in 
applying newly acquired enterprise management, marketing and business skills? 
h) Are the field demonstration projects under the AMDA program based on the conditions and 
problems facing farmers? 
3. Adoption of New Practices: 
a) Are beneficiaries adopting recommended practices (technical, enterprise management and 
business practices)? Which practices have beneficiaries been more inclined to adopt, and why? 
How can the program be modified to address these constraints to adoption? 
b) What is their primary source of information concerning business practices? What are other key 
channels of information? 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review A-3
c) Are the beneficiaries satisfied with the quality of technical assistance is provided? Is technical 
assistance to beneficiaries provided in a timely manner? 
4. Business Association Development and Capacity Strengthening: 
a) Assess the overall progress and approach to business association development followed by 
PAPA and AMDA. 
b) Is the program effectively developing the capacity of business associations to support their 
member needs and advocate for a more agribusiness-friendly policy and regulatory 
environment on a regional and/or national basis? If not, how the business associations’ 
advocacy capacity can be strengthened? 
c) Is the current approach to organizing business associations satisfactory to serve as a 
 forum for policy dialogue on agribusiness issues with the government? 
d) Assess the impacts/benefits accrued to associate members. 
e) Are the training materials and marketing information supplied by the implementer appropriate 
for the beneficiaries? 
5. Sustainability issues relating to recommended practices and business associations: 
a) Are the outcomes related to adoption of better practices sustainable, i.e. are the participants 
likely to continue after program ends? Which outcomes are likely/unlikely to be sustainable, 
and why? What can be done to increase sustainability? 
b) Are these newly created and/or improved enterprises and business associations likely to remain 
in operation after the programs are terminated? If not, why and what can be done to enhance 
their sustainability? 
c) How many program-assisted enterprises and associations are still operational? How could 
assistance be adjusted to ensure sustainability of the program-assisted entities? 
d) Are the business associations/entrepreneurs seeking grants/credits and/or technical assistance 
from other donor programs to leverage USAID-provided support? Have they mobilized any 
resources internally (i.e., membership fees)? If yes, provide anecdotal evidence. 
6. Monitoring and Evaluation (M&E): 
a) Has the program achieved its targets to date? If not, assess reasons for shortfalls. Do the 
performance indicators provide useful and reliable data on program progress and impacts? 
b) Are M&E data and anecdotal information used for management purposes? Does the technical 
staff use M&E data and anecdotal information to conduct their work and assess progress? Can 
M&E data and anecdotal information be better used for program management? 
III. METHODOLOGY: Rapid Appraisal techniques (e.g. key informant interviews, site observations, 
mini-surveys) are recommended for conducting this evaluation. However, the team should develop an 
appropriate methodology to address the evaluation statement of work. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review A-4
IV. DELIVERABLES: The team will submit a detailed work plan along with the schedule of field work 
specifying how the information will be collected, organized, and analyzed to meet the information needs 
specified in the scope of work not later than three days after the team arrives in the country. 
Upon the completion of the evaluation, the team will brief the Mission staff, and will submit a draft 
evaluation report two working days before the team departs from Baku. The Mission will provide 
comments and suggestions within one week after receiving the draft. The Final Report (5 bound copies 
and an electronic version in PDF format) will be provided to the Mission within two weeks after 
completion of evaluation in Azerbaijan. 
In addition, a copy of the final report should be submitted to: 
United States Agency for International Development 
PPC/CDIE/DI 
Ronald Reagan Building 
Washington, DC 20523 
To ensure that the evaluation findings and recommendations are presented in a way that is useful for the 
Mission personnel and program implementers, the following outline is recommended: 
• Executive summary not to exceed two pages in length composed of findings, a brief methodology 
statement, conclusions and key recommendations for each program evaluated; 
• Introduction and background section for the overall evaluation. 
• For each program: 
- Brief description of interventions; 
- Implementation progress, achievement of results and program impacts; 
- Discussion of SOW questions by applying the following format (findings, conclusions and 
recommendations). 
Each section should not exceed 20 pages. 
The report should also include a response regarding the cause(s), if any, of deficiencies or weaknesses. It 
will also include findings and recommendations on priorities for further assistance/activities in the area(s), 
improvements and possible synergies that can be achieved in USAID's programs supporting agriculture 
and agribusiness. A discussion of lessons learned and best practices that should be captured for 
consideration in the implementation of future activities. 
V. TIME FRAME: The evaluation is scheduled to commence in early June 2003. Duration of the 
evaluation is estimated to be approximately four weeks – 24 working days (2 days in Washington D.C. to 
interview program managers and document review, 1 day in-country for in-briefing SO team on work 
plan, methodology, and clarification of SOW questions; 1 day in-country for out-briefing SO team; 15 
days in country for collecting and analyzing data; 3 days for drafting report, and 2 day for revising the 
final report). 
A six-day workweek is authorized for the team. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review A-5
VI. TEAM MEMBER QUALIFICATIONS: 
Team Leader 
1. At least an M.S. degree in agriculture or agricultural economics. 
2. Extensive experience in analyzing agricultural development activities, pertaining to dairy, livestock 
and inputs. Be familiar with recent agricultural development in the Caucasus and/or NIS regions. 
3. Prior experience in leading evaluation and/or design teams. 
4. Exceptional interpersonal, leadership and management skills. 
5. Excellent writing skills. 
Agribusiness Specialist 
1. Advanced degree in agribusiness and/or agricultural marketing. 
2. Experience in implementing, assessing and evaluating agri-business programs preferably in NIS 
regions. 
3. Experience with a variety of data collection techniques. 
4. Organizational, listening and analytical skills. 
5. Excellent writing skills. 
The Team Leader’s principal responsibilities: 
1. Maintain contact with the technical office at USAID/Caucasus-Azerbaijan. 
2. Brief the Mission on findings and recommendations. 
3. Prepare and submit a final report to USAID/Caucasus-Azerbaijan within 10 working days following 
the receipt of comments from the Mission on the draft report. 
VII. LOGISTICAL ASSISTANCE: The Mission will make available reports and other background 
materials appropriate to the evaluation.
The team will be required to provide all other logistical arrangements such as international travel, 
accommodations in Baku, interpreting, secretarial and other services. The team will be responsible for 
arranging local transportation (hiring vehicle and driver). The team will travel within Baku and to 
selected regions in Azerbaijan to review programs, activities and interview beneficiaries. Detailed 
schedules for site visits and interviews should be developed by team members in consultation with 
USAID and it's implementing partners. Logistical issues to be resolved in advance including the number 
of sites to be visited, host partner institutions to be interviewed, timing of visits to regional offices, etc. 
The USAID Mission and the implementing partners will assist the Evaluation Team in scheduling 
meetings and site visits, including the names and contact information for key individuals to be 
interviewed in Baku, other cities and regions of Azerbaijan. The team should conduct interviews at 
least with the following people: 
• USAID/Caucasus-Azerbaijan senior staff members 
• LOL and IFDC staff members in Baku: LOL-David Blood, Jeton Starova, Rauf Akhundov; IFDC￾Manfred Smotzok, Ylli Bicoku, Farid Firidunov) 
• Staff members of other USAID-assisted programs, such as: ACDI/VOCA-David Sulaberidze, Ismail 
Rafi, Matthew Weber; IRC-Pamela Husein, Jeanne Izard; 
• CHF-Beverly Hoover. 
• Representatives of major donor organizations: World Bank, EBRD, TACIS and GTZ; 
• Beneficiaries and partners of AMDA and PAPA programs associations and enterprises established 
and/or supported by these programs. The name will be provided by implementing partners. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review A-6
State-side contacts: Prior to departure from the U.S. the team leader should schedule interview with Mr. 
Jim Herne, Central Asia and Caucasus Coordinator of Land O’Lakes (telephone: 763- 785-0282, ext.: 
4298, e-mail: jhern@landolakes.com ) and Mr. Scott Wallace, IFDC Agro-Business Specialist in Market 
Development Division (telephone: 256-381-6600, e-mail: swallac@ifdc.org) to learn more about AMDA 
and PAPA activities in Azerbaijan. 
USAID participation in fieldwork: USAID/Caucasus-Azerbaijan may choose to participate in the 
fieldwork, site visits as an observer. 
VIII. REVIEW OF DOCUMENTS: Prior to arrival the assessment team should review the background 
materials listed below and brief the Mission in conclusions drawn from these materials: 
• Cooperative Agreements between USAID and Land O’Lakes, and USAID and IFDC 
• AMDA work plan (Year 2002) 
• PAPA work plan (Year 2000, 2001 and 2002) 
• AMDA quarterly reports 
• PAPA quarterly reports 
IX. DISSEMINATION CONSIDERATIONS: All documents prepared by the evaluation team and 
delivered to USAID/Caucasus-Azerbaijan, including the final report, are viewed as the sole property of 
the U.S. Government, and only with the concurrence of USAID/Caucasus-Azerbaijan they should be 
disseminated to third parties. 
Annex 1: Participatory Agricultural Project in Azerbaijan (PAPA) 
The Participatory Agricultural Project in Azerbaijan (PAPA) is a three-year project funded by a $2.4 
million cooperative agreement with USAID in March 2000 and implemented by Land 
O’Lakes. USAID has recently awarded PAPA with a no-cost extension to run through June 2003. The 
objective of the project is to develop Azerbaijan’s dairy, livestock and hazelnut industries, with an 
emphasis on the target regions of Baku, Guba, Ismailli and Zagatala. Strategic technical assistance and 
training is helping the beneficiaries of the program to increase profitability through the development of 
agri-business associations, the expansion and improvement of production and value-added processing, the 
forging of marketing links, and increased availability and access to market information. These goals 
directly contribute to USAID Strategic Objective 1.3 (Accelerated Growth of Private Small and Medium 
Enterprises in Targeted Areas) and its accompanying Intermediate Results. 
A fundamental aspect of PAPA is its emphasis on agribusiness associations as engines for industry 
development. Land O’Lakes is utilizing associations as both a conduit for its assistance activities and as a 
means for supporting local capacity to support the agricultural sector. Therefore, PAPA's assistance is 
generally provided only to association members in order to encourage active participation. In addition, 
association members are required to contribute a share of overhead and variable costs for their activities, 
as well as to assist in their implementation. The overhead cost required of each association is expected to 
increase from 50% to 75% by the end of project. Since PAPA has helped to establish independent, 
democratic organizations, it does not dictate the activities and services that they should pursue, but rather, 
the project responds to their requests for assistance. 
PAPA is currently in the third year of its activity, where association development is playing an important 
role. Assistance to the dairy industry is focused on strengthening the Azerbaijan Association of Dairy 
Processors and regional livestock farmers’ association in Guba, Ismailli and Zagatala as well as on 
creating a new livestock farmers’ association in Masalli or Lenkoran. Hazelnut industry assistance will be 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review A-7
targeted toward strengthening the National Association of Hazelnut Growers and National Association of 
Hazelnut Processors. 
Agro-Input Market Development in Azerbaijan (AMDA)
USAID awarded IFDC a Cooperative Agreement in January 2002, to implement the Agro-Input Market 
Development in Azerbaijan (AMDA) project. The three-year $3.1 million project is designed to advance 
USAID Strategic Objective 1.3-Accelerated Growth and Development of Private Small and Medium 
Enterprises in the targeted areas. AMDA’s geographical coverage includes the following four regions of 
Azerbaijan: Masalli, Guba, Ganja and Sheki. The AMDA directly contributes to the result indicators of 
SO 1.3 by increasing trade volumes of fertilizer, seed, CPC and animal feed; supporting agro-input dealer 
enterprises and assisting them to establish an effective and sustainable trade association, introducing new 
products, and facilitating increased access to credit and investments for clients. AMDA project 
concentrates on the following four major components: business development and training; access to 
credit and finance, association building and development; technical training, transfer and extension 
services. 
Business development and training for targeted dealer clients in both, group and individual settings will 
be critical to facilitation of increased access to credit, forming effective trade associations and providing 
extension via agro-input enterprises. Emphasis is placed on practical business planning, market analysis 
as well as training in such areas as accounting, marketing, demand-oriented customer service and 
international business standards. 
One of AMDA’s main objectives is to establish a trade association that grows in size and influence and 
serves as a vector for technology transfer and policy change. AMDA is planning to form four regional 
sub-groups and work through them to demonstrate the value of a trade association through holding 
regular meetings and networking, business training, study missions and technical assistance in 
international procurement, group purchases of inputs, distribution of marketing information and collective 
advocacy efforts for policy reform. 
AMDA’s transfer of technical information and skills adds value to business of distribution and 
marketing of the agro-input products. AMDA conducts training of client dealers in technology and 
information transfer methodologies aimed at improving of services and increase in usage of 
economic and environmentally safe agricultural inputs. The technical training component includes 
field demonstrations under project supervision and is supported by classroom/workshop activities 
in private sector extension as a means of adding value to marketing inputs. The in-country 
training is supplemented by study missions to observe private sector extension programs and agro￾input marketing in other countries. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review B-1
Appendix B Relevant USAID Azerbaijan SOs and IRs 
The following narrative includes excerpts from the Azerbaijan Strategic Plan, 2001 – 2003, prepared by 
USAID/CAUCASUS. The AMDA activity operates under SO 1.3 and IR1..3..3 and IR 1.3.4. 
1. Statement of Strategic Objective 
SO 1.3, Accelerated Development and Growth of Private Small and Medium Enterprises in 
Targeted Areas. Support for small and medium enterprises, to include micro enterprises, forms the core 
of this objective. Private SME development is an essential requisite for economic growth in Azerbaijan’s 
transition from a Soviet-style economy. It is an area where progress can be made in the current political 
and economic climate, despite the absence of policies and laws that encourage private investment and 
business growth. Emphasis will be at the firm level, and or strengthening service providers, input supply 
and market systems that directly support these enterprises. 
The largely neglected agricultural sector (including agri-business) will be the focus of this SO, although 
not exclusively. Not only does this SO address the imbalance of government resource allocation, 
development of the agricultural sector, which comprises a major portion of the GDP, is vital for a stable 
market-oriented economy that will create jobs and increase incomes among a currently disadvantaged part 
of the population. 
To obtain the intermediate results envisioned in this strategy for SO 1.3, the SO focus is further limited to 
geographic “targeted areas.” This approach increases the likelihood that the program can result in 
meaningful progress toward the SO, given the overall policy, legal and resource constraints. There is 
strong central government control of organized social and economic activity in local areas. Criteria for 
selecting targeted areas include progressive local authorities that support private sector development. 
Few districts meet that criterion. For the four areas targeted, and by the end of the three-year strategy, 
USAID expects to have created a critical mass of financially successful private enterprises and 
associations of those enterprises so that continued economic growth can be sustainable. The impact of 
achieving this result could multiply under the following possible scenarios: (a) the central government 
approves of the results and encourages other local authorities to replicate them; or (b) the policy, legal, 
and regulatory environment improves through donor and central government efforts at reform. 
2. Problem Analysis 
Azerbaijan has made little headway in dismantling the central planning system inherited from the Soviet 
Union. Privatization and economic restructuring are in their infancy. Industrial enterprises, including oil 
and gas, power generation and various types of manufacturing, remain overwhelmingly in state hands. 
Privatization has occurred in the agricultural sector and slightly more so in retail trade. Officially, the 
public sector supports 42-44 percent of employment and GDP, while the private sector is at 30–32 
percent. In reality, private sector employment likely equals that of the public sector, and foreign and 
informal employment account for the remainder. Agriculture is the largest private sector contributor to 
GDP at 28 percent. With Section 907 precluding economic assistance to the government and a 
corresponding urgency to support nascent elements of private enterprise, USAID plans to focus its 
economic reform attention on the resource-starved but extremely promising agribusiness sector. Land 
privatization is occurring for small plot owners. The major crops produced are vegetables and fruit under 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review B-2
intensive land production. However, fiber and grain crops such as cotton and wheat, which are most 
economically produced in large contiguous plots, are still under state control. 
A major constraint is heavy taxation and the corruption that it fosters. Rigorous enforcement of taxation 
would deplete between 64 percent and 78 percent of all gross earned income for registered businesses. 
The government is collecting only 42 percent of its projected revenue, and the difference either is not 
collected or pocketed at various levels of the bureaucracy. Corruption is built into the system by paying 
tax officials a wage below the poverty line, but selling the tax collector job at a price according to its 
potential earnings through corruption. For the taxpayer, the bribe typically is cheaper than the tax. For a 
business or an association of businesses out of political favor, tax compliance and other forms of 
enforcing state licensing requirements and standards are formidable tools for control. The government 
shut down the USAID credit program from June 1999 through May 2000 for non-compliance with 
licensing requirements. The court system does not provide recourse for business as it lacks transparency, 
and both the judge and the defense lawyer are accountable to the prosecutor appointed by the Ministry of 
Justice. Until such time as the policy, legal, and regulatory environment improves, it is important for 
USAID to operate in areas where the local authority is more likely to support initiatives taken by the 
business community, both alone and in association with other civil society organizations.
Credit finance is limited by high interest rates (currently 24 percent to 40 percent for 3 months to 1 year). 
There are 74 banks in Azerbaijan, four of which are State-owned and control 61 percent of all credit 
portfolios. Currently, a financial sector restructuring is underway, which is bringing consolidation to the 
banking industry. For the agricultural sector, only large-scale agribusiness has the collateral to enter the 
financial market or sell equity to the bank, as one State-owned Enterprise (SOE) to another. Donor￾supported financial intermediaries are the only formal and viable source of credit for SMEs. 
Technology and its knowledge base are both out of date and out of step with the requirements of a 
modern market economy, especially regarding production and marketing systems. Most of the Soviet-era 
equipment in SOEs needs rehabilitation or replacement by more recent technology. The formal education 
system is not equipped to bring market-oriented business skills, information, and contacts to rural areas. 
Product differentiation and packaging for customer satisfaction are foreign concepts to Azerbaijani 
managers trained in meeting low (but standard) quality, large volume production targets. 
A. Causal Linkages 
The Results Framework appears at the end of this section. Accomplishment of SO 1.3 Accelerated 
Development and Growth of Private Small and Medium Enterprises in Targeted Areas will result in 
the economic development of such enterprises through individual business growth. Change will be 
measured in terms of increased growth of assets and employment, disaggregated by gender. The scope is 
limited to targeted areas because the overall policy and legal environment contains far too many 
constraints for business. The targeted areas meet a number of criteria that make them optimal for 
economic results. The knowledge, skills, technology and support mechanisms developed to achieve the 
target level of growth can be applied to other regions of the country, given appropriate funding, if the 
policy, legal, and regulatory environment improves. While not identified as a specific target area, USAID 
will apply successful models developed under this SO to programs in the regions served by SO 3.1 
Reduced Human Suffering in Conflict-Affected Areas, as opportunities permit genuine small enterprise 
development in these areas. 
Five intermediate results and three sub-intermediate results are required to achieve Strategic Objective 
1.3: 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review B-3
IR 1.3.1 Increased Access to Production Inputs 
This IR focuses on the agricultural sector and recognizes improved seeds, fertilizers, livestock feed, 
improved equipment, replacement parts, fuel or other inputs must be supplied at reasonable prices. 
Increasing information about suppliers increases competition among them. Organizing demand into large 
volume purchases, and supplying credit for purchases can help reduce the cost of, and increase demand 
for, inputs. Inputs new to farmers often require technical assistance or training to assure maximum results 
at minimal risk. For example, fertilizer improperly applied may burn the crops and improper equipment 
for the application of herbicides creates a health hazard. Improved seed and fertilizer sales in target areas 
will serve as the leading indicators of access to inputs. 
IR 1.3.2 Increased Access to Credit 
In the absence of an appropriate banking system, this IR will be achieved through donor supported 
financial intermediaries and monitored by the value of their loan portfolios and the number of loans. 
Credit targets are defined in aggregate amounts, but data will be reported disaggregated by target area and 
by gender. Credit often allows the purchase of needed inputs, covers operating costs until accounts 
payable are received, provides new equipment to increase efficiency or production, or buys research and 
development time to bring a new product or service on-line. Developing a new product or packaging an 
old one for a new market may require credit. Other donor credit programs will contribute toward this 
result and USAID will collaborate with the IFC, World Bank and EU/TACIS. 
IR 1.3.3 Increased Market Responsiveness of Enterprises 
There is a need to overcome the legacy of central planning by reorienting enterprises to a market-led 
business environment. If enterprises are to become competitive in domestic, regional or global markets, 
marketing and market research skills must be developed, production must be adapted to market 
requirements and demands, and business skills must be enhanced. Achieving this result will increase the 
number of products that enterprises sell and the number of market points that buy them. 
Attaining IR 1.3.3 requires three lower level sub-results: IR 1.3.3.1 Improved Enterprise Business, 
Technical and Marketing Skills; IR 1.3.3.2 Increased Adoption of Grades and Standards; and IR 
1.3.3.3 Improved Access to Market Information. Enterprises must understand market economics, how 
to market, and the technology required for production, packaging, marketing, transport and display to 
meet customer demand. As niche markets are defined, enterprises must adopt the required grades and 
standards to stay in those markets. In lieu of working with government agencies, assistance efforts will 
target self-regulating organizations and associations to establish the necessary standards and grades. 
Grades and standards become especially important when producers join to meet a common market 
demand. Without consistent quality and quantity, customers may choose another supplier who meets 
their standards. And, of course, in order to be responsive to markets, enterprises need information about 
those markets in terms of tastes, quality and quantity requirements, packaging preferences, timing, and the 
price that the market will bear. Increased market information, skills, and adoption of grades and 
standards are sufficient to cause an enterprise to increase its market responsiveness. 
IR 1.3.4 Private Membership Associations Organized 
Mechanisms must be created to multiply the impact and sustain the achievement of other results. 
Business associations can begin to replace donors as the link to production inputs, credit, market contacts 
and information, skills training or technical assistance. An informal association might combine the 
production of several members to define and enforce product standards in order to supply customer 
demand larger than any one producer could meet. An association of technical business specialists has 
already begun to provide technical assistance and training to enterprises on a fee-for-service basis. At 
some future point, a larger grouping of such associations could positively affect the policy, legal and 
regulatory environment through advocacy efforts. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review B-4
The five intermediate results described above are interactive in that they mutually reinforce each other. 
Inputs often require credit, and neither makes sense if there is no market to buy the production that 
results. A successful business enterprise cannot function efficiently in a policy, legal and regulatory 
environment that exacts an arbitrary and growing percentage of the total cost of doing business. And, 
successes achieved by a business during the strategic planning period will benefit from participation in a 
fee-for-service organization that helps assure continued future growth and replaces donor-created 
services. Each result is necessary, and together they are sufficient to achieve SO 1.3, and to sustain 
achievement. 
3. Program Approaches 
The envisioned activities will be designed to strengthen and expand nascent private SME businesses, with 
an emphasis on the agricultural sector. Key indicators for determining a positive impact on the sector are 
increases in enterprise employment and assets resulting from the program. USAID and its partners will 
select target areas using the following criteria for decision-making: (a) products of the area; (b) demand￾driven high value products; (c) product timing and potential contribution to GDP; (d) markets; (e) local 
authority support; (f) USAID experience; (g) facilities and infrastructure; (h) World Bank/EBRD 
involvement; (i) accessibility; and (j) oil-generated growth areas (e.g. pipeline routes, etc.). The proposed 
target areas based on the above criteria are: Masalli, Guba, Sheki, and the immediate surrounding urban 
regions of Baku.
USAID has identified six activities for SO 1.3, which are viewed as being viable for program support, and 
meet the restrictions under Section 907: 
* Market Responsiveness: The activity would provide technical assistance and training to private 
producers, input and service suppliers and entrepreneurs that emphasize production of high quality 
products, value-added through processing, and improved packaging. Opportunities exist, with the 
infusion of technical assistance and training, to address the issues of product diversification, import 
substitution, and expansion of regional market opportunities. If these improvements can be implemented, 
they should attract indigenous as well as foreign investors, who can provide equity and investment funds, 
improved technology and attract additional markets. 
* Production Inputs: An important complement to the program described above is a technical assistance 
and training activity designed to develop viable distribution systems for production inputs such as 
fertilizer, seed, and livestock feed. Also, machinery, equipment, parts, fuel and maintenance services are 
critical for supporting agribusiness activities. Private sector-supported technical assistance will be 
provided through cooperatives, associations and input supply dealers. 
* Credit: A loan program will be established to provide loans to SMEs, the majority of which will be in 
the agribusiness and rural services industries. Until the government completes formal restructuring of the 
financial sector, the only viable source of credit for rural SMEs is donor-funded intermediaries. Credit 
support and availability is critical for the growth of SMEs in rural Azerbaijan. In the perimeter of Baku, 
this SO may benefit from a link to SO 3.1 (Reduced Human Suffering in Conflict-Affected Areas), which 
includes a result that supports increased access to economic opportunities and services through 
community-based lending, which aims to increase their access to markets.
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review B-5
* Business Development: Establish a Business Resource Center that will provide technical assistance and 
training to develop small and medium size businesses in rural services and industries. The Center would 
have the technical capability to assist private firms with business plan development, provide financial 
advice, and assist with incorporating improved technology and overall management techniques into 
enterprises. The objective is to create risk-worthy enterprises that can attract investments. A small team 
of highly skilled advisors, acting as the core for providing guidance and training to indigenous teams of 
advisors, also would work with local private firms and businesses. USAID-funded volunteer assistance 
activities would supplement technical skill requirements and training needs of the Center. The aim is to 
establish an indigenous and sustainable capability to provide services to the private sector business 
community in Azerbaijan. This activity would build and expand upon existing projects that provide 
technical advice on agriculturally oriented income generation projects for IDPs and other socially 
vulnerable citizens. The Business Resource Center also would work in close collaboration with those 
international relief organizations that have initiated pilot income generation projects, if they require such 
services (in support of SO 3.1 Reduced Human Suffering in Conflict-Affected Areas). 
Training: Long-term and short-term training is one of the best tools available from USAID to foster 
change and extend the application of improved technology in Azerbaijan. Training will assist with the 
infusion of free market concepts, improved management and business techniques, and provide 
opportunities for Azerbaijanis to begin developing information networks, exploring new markets, and 
becoming knowledgeable about the requirements to become competitive in these markets. USAID will 
support training that focuses on improving skills that address priority constraints, and which provides the 
highest impact for private sector business development in the country. Training will be supported under 
SO 4.2 (Cross-Cutting Programs). 
* Private Associations: Support is required to strengthen, and in some cases create, private business 
owner associations. Associations selected for support would provide an economic benefit of sufficient 
importance to their members that they would support its costs. For example, associations might provide a 
technical service for a fee (veterinary service and supplies), a market link (quality control and packaging 
for several producers to supply large orders) or low cost/high volume input purchases. Such 
organizations can, and have, become effective advocates and lobbyists on behalf of their members in 
several countries in Eastern Europe and the former Soviet Union. 
4. Development Partners 
Agriculture is the priority sector for the World Bank in Azerbaijan. It is supporting a four-year, $72 
million program focusing on two areas: (a) farm restructuring and land privatization, and (b) 
rehabilitation of irrigation and drainage systems and agricultural credit. The World Bank program is 
contingent on specified progress in macro-economic stabilization and is closely coordinated with the IMF. 
USAID will take World Bank programs into account in the selection of target areas for the program. 
The European Union Technical Assistance to the Commonwealth of Independent States (EU/TACIS) 
program, likewise, places a high priority on agriculture in its assistance effort. Their $24 million program 
concentrates on cooperative banking and marketing in the grains and milling industry, primarily wheat 
and barley. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review B-6
5. Sustainability 
Given the restricted environment, it is not expected that this SO will be fully sustainable by the end of the 
strategic plan. Important progress can be made, however, to create the firm foundation necessary to 
actively build a sustainable, competitive private SME sector as the political and economic climate permit. 
The chief mechanism to constitute the base for sustainability is implementation of IR 1.3.4 Private 
Membership Associations Organized. Private associations will assume responsibility for the technical 
assistance, training, business contacts, credit and advocacy services supported by USAID. USAID 
already has organized one association of technical professionals to provide fee-for-service technical 
assistance to business. In essence, USAID’s implementing partner replicated itself with Azerbaijani 
professionals. In a similar manner, other kinds of associations will form around other needs. USAID 
plans to work with those associations until they achieve a level of revenue from providing value-added 
services to clients to cover their operating expenses. As the associations become sustainable through the 
quality of service provided, the services also become sustainable. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review B-7
SO 1.3 Accelerated Growth 
and Development of Private 
Small and Medium Enterprises 
in Targeted Areas 
Timeframe: 1 - 3 
Indicators: Growth of assets of assisted
enterprises by target area; Increase in 
employment of assisted enterprises by target 
area desegregated by gender.
IR 1.3.1 Increased 
Access to Production 
Inputs 
Timeframe: 1 - 3 
Partners: ACDI/VOCA
Indicator: Sales volume of (a) 
fertilizers (b) improved seeds; 
Number of enterprises 
purchasing inputs 
IR 1.3.2 Increased 
Access to Credit 
Timeframe: 1 - 3 
Partners: Shorebank, 
ACDI/VOCA IFC, AED, 
EU/TACIS, SCF, FINCA 
Indicators: Total value of 
loans by target area and 
gender; Number of borrowers 
by target area and gender 
IR 1.3.5 
Improved 
Policy/Legal/ 
Regulatory 
Environment 
and Physical 
Infrastructure 
Supporting 
Small and 
Medium 
Enterprises 
IR 1.3.4 Private 
Membership Associations 
Organized 
Timeframe: 1 - 3 
Partners: ACDI/VOCA 
CDC, Shorebank, 
Eurasia, AED, LOL, 
FINCA
Indicators: Number of 
associations providing 
services whose revenues 
cover operating expenses;
IR 1.3.3 Increased 
Market 
Responsiveness of 
Enterprises 
Timeframe: 1 - 3 
Partners:
ACDI/VOCA, CDC, 
Shorebank, AED, LOL 
Indicators: Product/ service 
differentiation; Number of 
markets; Number of 
IR 1.3.3.1 Improved Enterprise 
Business, Technical, and 
Marketing Skills 
Timeframe: 1 - 3 
Partners: ACDI/VOCA, CDC, Eurasia, AED, 
LOL, CHF 
Indicator: Number of enterprises that 
apply training skills
IR 1.3.3.2 Increased Adoption 
of Grades and Standards 
Timeframe: 1 - 3 
Partners: ACDI/VOCA, CDC, LOL 
Indicators: Number of 
products/services for which grades and 
standards are established; Sales of 
products/services meeting grades and 
IR 1.3.3.3 Improved Access to 
Market Information 
Timeframe: 1 - 3 
Partners: Shorebank, ACDI/VOCA, AED, 
LOL 
Indicator: Share of market price received by 
farmer 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review C-1
Appendix C Contacts In Azerbaijan 
Jeffery R. Lee, Deputy Country Coordinator Officer, USAID, Caucasus/Baku 
E-mail lee@usaid.gov 
John Brannaman, Agricultural Development Officer, USAID, Caucasus/Baku 
Manfred Smotzok, Chief of Party, IFDC, AMDA, Baku 
Ulli Bicoku, Association & Business Development Adviser AMDA, Baku 
Shahin Abbasov, IFDC Training Specialist, Baku 
Ed Beaman, IFDC, ST Consultant, President, Agribusiness Association of Iowa 
David Blood, Chief of Party PAPA, Baku 
Balagardashov Nadirshah, Khachmaz Milk Factory and Dealer, Khachmaz Region 
Abil Gushgari, Association Dealer selling Fertilizer and Pesticide, Guba Region 
Aydin Aspendiev, Association Dealer selling Pesticide, Khachmaz Region 
Bakiz Mammodov, Association EMA representative, Fertilizer and Pesticide, Guba Region 
Nazim Mannadov, Association Regional VP, representative Agro Khimya, Guba Region 
Mahir Babayev, Association Executive Council, Dealer, Guba Region 
Zeynalov Saday, Executive Committee Association, Apple Grower, Guba Region 
Agagul Huseynov, Association Regional Vice President and Dealer, Jalilabad Region 
Eldar Rahimov, Association and Executive Council and Dealer, Jalilabad Region 
Ramiz Yahyayev, Association Dealer selling Fertilizer, Jalilabad Region 
Gurbov Shaig, Association Dealer and Trader, Lenkoran Region 
Asadullayev Harif, Association Dealer Trader, Lenkoran Region 
Razzag Gasymov, Association Executive Council and Dealer, Masalli Region 
Shiraslan Mammadov, Association Dealer, Masalli Region 
Aliyev Ramiz, Association Dealer, Masalli Region 
Adalet Nekhmetov, IFDC Southern Region Coordinator, Director Jalilabad Agro Center 
Nuraddin Khasiyev, Association Nursery Dealer, Lenkoran Region 
Ilham Jamalov, Association Dealer, Lenkoran Region 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review D-1
Appendix D Interview Comments 
Zeynalov Saday, Executive Committee Association, Apple Grower, Guba Region
He stated that he had experienced quality improvement in both the tree development and fruit bearing on 
the test 1.5-hectare plot he is testing for the project. He fully expects his sons, brother and neighbors to 
implement these practices next season. He points out that the apples stay on tree and do not fall on 
ground prematurely. He has generated such excitement in the community that he has appeared three 
different times on local TV discussing the IFDC project training and methodology program. 
Balagadashov Nadirshakh, Khachmas Milk Factory and Dealer, Khachmas Region
I toured this processing facility and found it to be a very high-level milk product, cheese making and ice 
cream cone operation. The scope of operation was producing over 16,000 cones per day and 140 
kilograms of white cheese produced from 800 metric tons of 3.6% milk per day. The amount of yogurt 
and sour cream production was undisclosed. 
This dealer was very glad to have been allowed to participate in the new Guba Association. He felt that 
the IFDC efforts to empower the local agro-input dealers with the skills to help their clients increase 
production were a good value for the small Association fee he will be paying. He has noted that the 
demonstration plots in his region has shown that the methodology (fertilizer, pesticide, and drip 
irrigation) introduced by IFDC trainers has been very successful. 
Abil Gushgari, Association Dealer selling Fertilizer and Pesticide, Guba Region
This gentleman hopes that the IFDC project will be extended beyond is current expiration of 2004. He 
thinks that the current approaches are working well for the local dealer and much more needs to be done. 
He suggests that training videos be developed to incorporate the methodologies of production not easily 
visible to them. His own operation has shown a high level of improvement concerning the health and 
yield of his trees. He sees excitement from his neighbors and his relatives who also intend to use the new 
methodology. 
Aydin Espendiyev, Association Dealer selling Pesticide, Khachmas Region
This dealer was very impressed with the training plots. He noted that the demonstration plots revealed the 
result of using various combinations of fertilizer and pesticides applications. He suggests that an effort be 
made to organize trade and information missions to the more highly developed agricultural economies so 
they may benefit from lessons learned. 
Bakiz Mammadov, Association EMA representative, Fertilizer and Pesticide, Guba Region
This association member was very pleased with the quality of training, to date, provided by IFDC. The 
information trade mission organized by IFDC to Georgia was well received. He of course would like to 
visit USA apple growing regions to learn about fruit tree horticulture in weather conditions similar to the 
Guba region (-10 to –15 centigrade in winter and +28 centigrade in summer). I suggested that Michigan 
conditions were similar and procedures developed there might be applicable. Short of an actual visit he 
suggested that the project develop and or arrange for video instruction lessons specific to Michigan 
methodology be brought to Guba region for review and training so that they can transfer this information 
to their clients. 
On the other hand, he complained that the quality of pesticide being imported from Turkey seems to have 
quality distortions from what is on the labels. He felt that the IFDC project might be able to help organize 
a defense against this problem. Another problem expressed was that the customs regime at the border 
between Russia and Azerbaijan is out of control. He stated that of the six rubles charge paid by his client 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review D-2
apple exporters five rubles is strictly a payoff to the guards. Something at a higher level must be 
accomplished to address this issue. 
Nazim Mammadov, Association Regional VP, representative Agro Khimya, Guba Region
This member was extremely positive. He points out that not all the regional participants ever knew each 
other before the IFDC representatives started to invite them to join an association of dealers. Currently 
they have met several times and have shared their problems and ideas with each other. 
He currently has two major concerns. The customs problem at the border has caused losses to his 
operations. He has had over 300 trucks held up for more than 7 days last December. He states that on 
either side of the border they create delays to encourage the payment of bribes. In dealing with not only a 
perishable but also a low profit margin product, the results can be financially devastating. Secondly, he 
has a problem organizing a storage facility for his apples. He has over 20 hectares of production, which 
means that with lumpy marketing he must store some product to smooth out harvesting from deliveries. 
He can purchase a facility nearby (which I visited) for only $30K that would be available for the whole 
region to use. However, the current members cannot pay cash for the property and no financial institution 
will give any long-term (more than 1.5 years) loan. He asks if the project can introduce some new 
innovative financing with CREDAGRO or ACDI/VOCA, etc for the larger producer. 
Mahir Babayev, Association Executive Council, Dealer, Guba Region
This individual also complemented the IFDC effort in their region. He noted that the demonstration plots 
have proven to be an attention-getter and that local producers are visiting and inquiring about the 
methodologies employed. He inquires about the possibility for the project to help organize one specific 
dealer who can distribute the different types of fertilizer e.g. TSP, N, P, and K. In addition, he suggested 
that the IFDC project might assist in the development of an association or some other appropriate entity to 
offer various laboratory-testing fee based services to the dealers 
Agagul Huseynov, Association Regional Vice President and Dealer, Jalilabad Region
This dealer is also vice president of association. He has two potato demonstration plots. He has varieties 
from Holland, Russia and Poland in one and five varieties from Germany in the other. Results will be 
observed at harvest in July/August. He anticipates the yield as follows: old way has been 25 tons/ha; 
Russian varieties will be 40 tons/ha; and finally the new varieties from EU will produce 60 tons/ha. He 
was pleased that IFDC brought in the TSP and helping the dealers locate sources for importation. He 
hopes that a central location in the region will be set up to supply the farmers. By using TSP, he has cut 
back the land under cultivation for potatoes and uses the balance for alfalfa production. They have 
modern machinery e.g. tractors, harvesters and planters that they rent out for all farmers in the area to use. 
He commented that they have been in the box and with IFDC assistance they can now be out of the box. 
Eldar Rahimov, Association and Executive Council and Dealer, Jalilabad Region
This interviewee has 10 hectares of potatoes and 10 hectares of wheat under cultivation. He is using TSP 
as a variable along with using several varieties. The results will be available after a month or so. He feels 
that the association is like a business and must produce value for the owners. He thinks that the advocacy 
aspect and the training aspect to function to give value. Other associations he has joined do not deliver 
the information they promise and/or are prematurely left alone. IFDC training has been suburb and 
continuing education prospects seem interesting. What is needed is training for marketing output., 
possibly to prepare association members for exporting. 
Ramiz Yahyayev, Association Dealer selling Fertilizer, Jalilabad Region
This dealer pointed out that he could, at this time, sell 70 tons of TSP. He also has under cultivation 10 
hectares of potatoes. He stated that what is needed next is marketing information to sell the additional 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review D-3
production. Exporting of potatoes is feasible if they could learn how to grade, apply accepted 
international standards, and identify the new markets. They also need to develop storage facilities to hold 
product so they are not forced to sell everything at harvest time. 
Gurbov Shaiz, Association Dealer and Trader, Lenkoran Region
This is a trader dealer. This implies that the gentleman will buy and sell products. Some time the 
fertilizer and sometimes the output products themselves. He is a big proponent of starting an export￾training program. He stated there is no help from the Ministry of Agriculture on this issue. Potatoes from 
this region are excellent product for the Russian market as they have fresh product before the major 
Russian harvest. This gives them an advantage, but in general, they have not been in a position to execute 
this strategy. He feels that trade missions to the neighboring countries would identify new markets for 
their high quality potatoes. Iranian potatoes are cheaper but quality is lower and many consumers prefer 
Azerbaijan product. Of course, the customs hold-up is something that can only be handles by the ministry 
or some other government body. Dealer advocacy using the power of the association might be the correct 
approach to mitigate this issue. 
Asadullayev Arif, Association Dealer Trader, Lenkoran Region
This dealer is also a trader. He is very appreciative of the IFDC introduction of Israeli drip irrigation 
technology and the new Greenhouse technology to be shown this month. He stated that the instruction 
were complete with 9 pages of detailed coaching making the new technologies understandable. He hopes 
that this technology transfer will not be prematurely withdrawn but rather be an important element to the 
regions training programs. He is also grateful that IFDC has connected him with the EMA Company in 
BAKU and now he is an official representative of their pesticide products in the region. He said that there 
is 3,000 hectare of potatoes in this region and the demonstration plots should reach first 100 farmers and 
word will reach 600 farmers and finally he expects over 2,000 to learn the new technologies and varieties 
used in the demonstration plots. 
Razzag Gasymov, Association Executive Council and Dealer, Masalli Region
The location of the wheat plot was central to seven villages and it is expected to have 400-600 farmer 
visitors this harvest season. The dealer was most impressed with the matrix of possible results (7 rows of 
varieties by 4 rows of different fertilizer levels) from each demonstration plot established. He also 
himself, has 7 hectares of wheat under cultivation. They (the farmers) can see results of differing 
varieties; some characterized as hard wheat some distinguished as soft wheat, as well as the parallel affect 
(yields) of different amounts and types of fertilizers. This dealer was so impressed with the 
demonstration plots that he sold 5 tons of fertilizer and recruited farmers outside the test regime. The 
IFDC project through association training has supplied local experts and international consultants to 
transfer knowledge to the local members. The training has averaged 1.5 times each month during the 
season on how to apply the fertilizer and pesticide. The dealer members can pass the information on to 
their farmer clients. He said it was like IFDC training reminded him of going to college. He thinks that 
an increase margin of double current expectation is possible because of higher price for higher quality of 
product. Sustainability does not seem to bother this dealer as he stated that if they learn new technologies 
they would be glad to pay dues. 
Shiraslan Mammadov, Association Dealer, Masalli Region
This is a dealer only member who operates a large storefront of construction material on the major road in 
the region. He stated that all relationships in agricultural community were lost after the collapse of social 
system. The IFDC project has brought together over 100 dealers who know each other and can network 
to share experiences and solve their common problems. The information technology transfer provide by 
IFDC is overwhelming and very effective. The methodology of developing farm trials and demonstration 
plots is a program that has made a difference to the community at large. IFDC has instructed the 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review D-4
association members on steps to maintain there sustainability after project support ends. He himself has 
recruited over 30 farmers to try the fertilizer and monitor the results for others to experience. He stated he 
has already received orders for fertilizer for the next season. He felt, however that additional markets 
must be developed to prevent oversupply. Markets in Russia, Turkey and central Asia are good 
candidates for investigation. 
Aliyev Ramiz, Association Dealer, Masalli Region
This is a dealer of fertilizer, however, after he has seen the experimental plots under the IFDC project he 
has recently collaborated with another farming entrepreneur and is cultivating 20 hectare of potatoes. 
Under the Cochran Fellowship program this gentlemen will be making a tour of USA agriculture in 
August of this year. He is also, with project support, going to Moscow to a Conference and to sign a 
contract to purchase directly the new fertilizer for the region’s customers. He mentioned that the IFDC 
training sessions held about three times per month this season have been extremely effective. In addition, 
he complemented the project for supplying the storage containers, which he has strategically placed 
around the region so that he can service his customers more efficiently. He commented that if the 
association networking and advocacy program continue as they are he see no problem of paying fees and 
sustaining the organization. 
Adalet Nekhmetov, IFDC Southern Region Coordinator, Director Jalilabad Agro Center
This is the director of the southern region Agribusiness Center. Several donor groups, including the 
MERCI Co of Oregon, a private humanitarian group and ACDI/VOCA, support this center. The IFDC 
project now uses the director to help coordinate the activities in the southern region and to give feedback 
as to the subjects scheduled at the training sessions. The center also deals directly with the farmers and 
gives agronomy support, business plan development and spending control advise for a fee. Thought the 
center, CREDAGRO, an ACDI/VOCA financial assistance program has given 200 farmers in the region 
over $600,000 of credits. The center is administrating a farmer survey of 70 participants for the farm 
trials used to evaluate the AMDA project’s fertilizer and new wheat variety use. 
Nuraddin Khasiyev, Association Nursery Dealer, Lenkoran Region
This is a major shaker and mover in the community. He has been on several training trips to other 
countries including the USA. He is a dealer of fertilizer as well as a nursery farmer cultivating over 20 
hectares, which includes 3 hectare of Kiwi, 10 hectares of tomatoes and cucumbers he also produces 
tangerine, orange and lemon stock as well as many ornamental tress. He is coordinating a drip irrigation 
demonstration plot for cucumbers for the project. He has worked with other donor agencies such as the 
World Bank funded State operated Agricultural Institute in Baku and ACDI/VOCA. He has participated 
in some other experimental association building but they are failing. He believes that those other projects 
were high on promises but low on delivery of potential. The IFDC project has more than delivered all 
that it promoted. He feels that what is needed beside more of the same from IFDC is training to develop 
export market, e.g. quality control, grading and standards, packaging, storage technology and marketing 
skills. As the new technologies implemented by IFDC increase production they need to develop new 
markets. Additionally, they need help to overcome the customs illegal activities on the borders so they 
have fewer interruptions with export deliveries. They are very vulnerable since their products are 
perishable and custom agents know that. 
Ilham Jamalov, Association Dealer, Lenkoran Region
This is a dealer and small farmer. He works 2 hectares with tomatoes and cucumbers. He also is working 
with project on a demonstration plot using drip irrigation techniques. He is interested in getting 
information about greenhouse technology for tomato growing. He is very pleased with the progress of the 
association-networking regime. He now can coordinate with other dealers in the region any advocate 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review D-5
issues that can effect them all. Before the project helped organize them, he never met many of his fellow 
dealers. He believes that increasing their marketing skills by training for quality control, better 
packaging, etc will be crucial to their success. Export training would expand the marketplace so they 
could better deal with the huge influx of lower quality Iranian product. He felt the they should advocate 
some sort of protection from imports during that season. I attempted to persuade that increasing exports 
of higher quality Azerbaijani vegetables would be a better approach then looking for protection and 
receiving inefficiency in their operations. There were no negative comments about the IFDC project only 
compliments. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review E-1
Appendix E 
Leaflets 
(June, 10 2003) 
Reprinting 
No. leaflets given 
different 
organization 
Total 
No. Name of Publication Time of Printing No. of 
copies 
Time Copy 
1 Soil sample test July, 2002 500 17/09; 
15/01 800 CHF 1300 
2 Fertilizers and their 
effective use July, 2002 500 17/09; 
15/01 400 CHF 900 
3 
Recommendation of 
Planting technology of 
Winter wheat 
July, 2002 500 06/09; 
15/01 700 CHF 1200 
4 Phosphate fertilizer August, 2002 500 17/09; 
08/10 200 CHF 700 
5 Wheat variety August, 2002 200 08/10; 
15/01 500 CHF; GBG 700 
6 Potassium fertilizer August, 2002 500 17/09; 
15/01 700 CHF 1200 
7 Planting technology of 
potato in Azerbaijan September, 2002 500 03/10; 
15/01 700 CHF 1200 
8 Determination of seed 
rate October, 2002 500 17/09; 
15/01 300 CHF; GBG 800 
9 Tomato trial October, 2002 500 17/09; 
08/10 300 CHF 800 
10 Carnal burnt October, 2002 500 15/01; 
25/03 800 CHF 1300 
11 Apple trial October, 2002 500 15/01; 
25/03 300 CHF 800 
12 Urea December, 2002 500 15/01; 
25/03 300 CHF 800 
13 DAP December, 2002 500 15/01; 
25/03 300 CHF 800 
14 Soil preparation before 
planting December, 2002 500 15/01; 
25/03 800 CHF 1300 
15 Apple technology January, 2003 500 25/03 1000 1500 
16 Pest and diseases on 
Apple January, 2003 500 25/03 1000 1500 
17 Pesticide safety use February, 2003 1000 25/03 1000 2000 
18 Diseases of Potato March, 2003 500 500 
19 Pest of Potato March, 2003 500 500 
20 Alfalfa technology March, 2003 1000 1000 
21 Cabbage technology May, 2003 500 500 
22 Tomato technology June, 2003 500 500 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review E-2
Brochures 
(June, 10 2003) 
Reprinting № Name of Publication Time of 
Printing 
No. of 
copies Time Copy 
Total 
No. brochures 
given different 
organization 
1 Pest and diseases on 
Wheat July, 2002 500 February, 
2003 1000 1500 25 - GBG; 50 - 
CHF 
2 Potato technology October, 2002 500 March, 2003 500 1000 25 - GBG; 50 - 
CHF 
3 Pest and diseases on 
Potato October, 2002 500 March, 2003 500 1000 
25 - GBG; 
20 - IIALD; 
50 - CHF 
4 Fertilizer and their 
effective use January, 2003 1000 1000 
50 - Agriculture 
Academy, 
20 - GBG 
5 Pesticide safety use March, 2003 1000 1000 20 - GBG 
6 Alfalfa technology April, 2003 500 500 
7 Maize pest and 
diseases April, 2003 500 500 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review E-3
Posters 
(June 10 2003) 
Reprinting No. posters given 
different organization Total 
No. Name of 
Publication 
Time of 
Printing 
No. of 
copies Time Copy 
1 Pest and diseases 
on Wheat 
July, 
2002 500 March, 2003 500 25 - GBG; 
50 - CHF 1000 
2 Pest and diseases 
on Potato 
October, 
2002 500 January, 
2003 500 25- GBG; 
50 - CHF 1000 
3 Fertilizer 
recommendation 
October, 
2002 500 
20 - GBG; 
10 – Agriculture Aca￾demy; 
500 
4 Crop Rotation I March, 
2003 250 
25 - IFRC; 
 20- GBG; 
World Bank Project 
250 
5 Crop Rotation II March, 
2003 250 
25 - IFRC; 
20- GBG; 
World Bank Project 
250 
6 Crop Rotation III March, 
2003 250 
25 - IFRC; 
20 - GBG; 
World Bank Project 
250 
7 
Crop Rotation of 
Vegetable (with 
explanation) 
April, 
2003 250 
25- IFRC; 
20- GBG; 
World Bank Project 
250 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review F-1
Appendix F Published Project Goals
The four sections of the project divide the interrelated assistance as outlined: 
SECTION ONE BUSINESS DEVELOPMENT AND TRAINING
• Increase the amount, quality and balance of fertilizer used appropriately by assisting dealers gain 
access to supplies and to satisfy and develop respective markets. 
• Expand production and marketing of improved seed. 
• Stimulate farmer demand for improved agro-inputs by using proven techniques such as private sector 
extension services and technical information transfer centers. 
• Link reliable competitive supply of inputs with farmer organizations. 
• Coordinate market analysis for animal feed: encourage and support use of U.S. feed grains and 
concentrate, including USDA programs; promote use of high energy feed. 
• Establish a system for collecting, collating, and disseminating data on supply and prices for key 
inputs. 
• Improve business, technical management, and marketing skills. 
SECTION TWO ACCESS TO CREDIT AND FINANCE
• Organize training to help agro-input dealer clients prepare business plans and manage their finances 
and to inform bankers about agribusiness. 
• Help clients tap ACDI/VOCA, EU, WB, and commercial bank credits and explore ways to establish 
new credit schemes, such as USDA programs. 
SECTION THREE ASSOCIATION BUILDING
• Identify agro-input dealers and help them establish a trade association. 
• Teach the association how to serve its members and generate revenue. 
• Expand the growth of business support organizations linked to associations. 
• Prepare the dealer trade association in concert with others to engage in policy dialogue with decision 
markers, based on comprehensive economic analysis. 
• Help them draft legislation and regulation for fertilizer, seed, and CPC 
• Provide policy advise on improving seed registrations and regulatory regime. 
SECTION FOUR TECHNICAL TRAINING, TRANSFER, AND EXTENSION SERVICES
• Encourage a broader availability and range of fertilizer products in field demonstrations. 
• Facilitate group purchasing and access to international fertilizer markets. 
• Prepare recommendation brochures for selected crops and fertilizer products. 
• Demonstrate the value of using cleaned and treated seed even at the farmer-saved level. 
• Introduce new seed varieties in field demonstrations; provide information on seed issues. 
• Focus on safe handling issues regarding CPC; engage international suppliers in effort to promote 
safety and improve the availability of key products, e.g. via supplier credits. 
• Feature management of maize and alfalfa production to increase local protein. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review G-1
Appendix G 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review H-1
Appendix H 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review I-1
Appendix I 
The Case for Exporting of Azerbaijan Agricultural Outputs 
The world economy is becoming more and more globalized and Azerbaijan is an economy in transition. It 
enjoys several exported and potentially exported agricultural commodities16 and has nine climatic zones 
making it similar to a California type environment -- conducive to agricultural production. Therefore, 
Azerbaijani agricultural producers and processing firms should consider expanding exports as a way of 
increasing sales. Furthermore, firms taking advantage of the “economy of scale” notion, would lower 
operating costs and become even more efficient. This model would apply to many other agricultural 
products, such as livestock, meat, dairy, meat processing products, etc. 
For, example, Russian buyers of apples have expressed an interest in the high quality (natural and good 
tasting) of fruit product produced in the Guba region. Additionally, Azerbaijan enjoys a land boundary 
with Turkey, Georgia, Iran, and Russia—major agricultural consuming economies, as well as good 
relations with several of the “Stans'” nations. 
 
Selling in foreign markets, however, presents several factors that should 
be examined. Many countries (and/or trading regions) have tariffs, 
import quotas, customs harassment, and/or non-tariff barriers (possibly 
disguised as sanitary concerns) that interfere with free trade17. Local 
competition may be strong in many potential target countries, where the 
local firms receive favored treatment. Conventional financial collection 
problems, as well as, currency regulations may make withdrawal of money difficult after the products are 
delivered. 
In spite of these difficulties, export business often is an attractive option. In analyzing foreign markets, as 
any other new markets, the added or incremental cost should be balanced against the added income. Once 
the Azerbaijan Enterprise has completed its product engineering and is “tooled-up” for production, the 
cost per unit of turning out an added percentage is less than the total average cost of the basic output. If 
the Azerbaijani entrepreneur has idle capacity in his operations, this incremental cost may be very much 
lower. So that even though there are difficulties in selling across borders, the net revenue received may 
still be above the incremental cost. 
Additionally, the ability to compete in world markets is one test of whether Azerbaijan should be an 
exporter or an importer of certain commodities. Trade and international competition provide market 
signals on farmer’s decisions and resource efficiency; a potential exists for increasing total output and 
consequently the rural Azerbaijan standard of living, through increased rural economic exposure to 
international trade. Thirdly, increased export trades also make an important contribution to the Azerbaijan 
balance of payment account. Increase export of agricultural products allows for increase imports of 
needed goods with out negative foreign exchange repercussions. 
 
16 Word of mouth has reveled the apples, potatoes, cucumbers, tomatoes, and Kiwi, etc. 
17 According to traditional theory, a marketing situation where no tariffs or other barriers are imposed on international trade (free 
trade) is always superior to a policy of national self-sufficiency and nonreliance on imports or economic aid (autarky). Some 
individuals gain under free trade while others lose, but gainers offset the losers. Studies indicate that free trade is remarkably 
robust. The augment for “free trade” rests upon the principal of potential compensation of losers by the gainers. 
Transfer the economic 
benefits of value-added 
sales to Azerbaijan 
economy 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review J-1
Appendix J 
TABLE 1 
 Results Indicators in Support of SO 1.3 
 
 Projected Actual Projected 
 Baseline 1st-Yr 2nd-Yr 3rd-Yr 1st-Yr 2nd-Yr
Growth of assets 
of assisted Enterprises 50 100 150 60 
increase business 
and employees by 10%/yr 
 
Sales of Fertilizer (baseline under s/b 40,000mt 
and improved seeds 
Fertilizer 12000mt 15000mt 18750mt 24000mt 50000mt 
Seeds18 $2M $2.5M $3.2M $4M ? 
CPP19 $3.7M $4.7M $5.8M $7.4M ? 
Feed 
 
Number of farm 
enterprises purchasing inputs 2000 3000 4000 4000 4000 
 
Total value of loans $60K $150K $350K $65.4K $218.5K 
Num of Borrowers 3 6 12 9 26 
Self-Investment $250K $92 130 $132K 
 
Product/service differentiation 100 63 100 
e.g. technical information, extension services, 
etc. 
New agro-input products 10 18 25 
e.g. fertilizer types, seed varieties, animal feeds 
 
Enterprises that apply training skills 550 1100 2150 888 1100 
Num of product/services for which 
grades/standards are established 5 45 
Num of associations whose 
revenue cover operating expenses 100% 0,15 1 
% of target population aware of at 
least one issue/year 100% 100% 100% 100% 100% 
Num of organizations conducting 5 or more 5 0 1 
advocacy & outreach activities/year 
Num of people trained in advocacy & organizational 20 20 20+ 
management 
Source: Project proposal 
 
18 Original Project Projections are based on whole country data, but Project only operates in 17.2% of Azerbaijan 19 Original Project Projections are based on whole country data, but Project only operates in 17.2% of Azerbaijan 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review J-2
TABLE 2 
UPDATED INDICATORS 
From 1st Yr Report 
BUSINESS DEVELOPMENT: Locals Importers
 Identification of 
potential customer/clients 100+ 5 
 
Presentations of Project Support 3 rounds each in 4 regions 
 
Training of customer clients 64 -44 Technical -10 Association - 10 
Management 
Development of Business Plans 9 
 
Distribution of Storage containers 59 
Collection of Agro input market 
information 
Collaborated with LOL Price Bulletin every 
month 
 
Trade/Information mission to Georgia 7 
Arranging of input imports 
Fertilizer 120 tons 
Vegetable seed 60 tons 
Potato seed 75 tons 
Survey conducted to 
dealer farmer & processors 250 
 
Trade/Information mission to USA 1 
CREDIT FINANCE: 
Conduct workshops 
Groups 8 
Individuals 24 
 
Marketing Seminars 
General Principals 4 
Fertilizer 5 
 
TRAINING AND EXTENSION 
Field Days (Dealers) 2 with 72 dealer in 2002 
 15 with 500 dealer/farmers in 2003 
Field Day (Farmers) 3 with 79 farmers in 2002 
 combined with above 
Articles 
Written Media 31 about fertilizer and proper pesticide use 
Television & Radio 24 programs various subjects 
ASSOCIATION BUILDING: 
Association Organizing Meetings 3 in 4 Regions 
 
Signed Letters of Interest 64 
Association Council Training 
National 12 
Regional 5 
Source: Project 1st-YR Report and Projections from Staff 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review J-3
 
TABLE 3 
Azerbaijan -- AMDA – Budget 
 
January 30, 
2002 to May 
30, 2003 
 
TOTAL 15
BUDGET MONTHS
PERSONNEL $834 950 $349 792
 
FRINGE BENEFITS $282 100 $137 421
TRAVEL $186 920 $101 802
EQUIPMENT $167 900 $48 673
SUPPLIES $44 500 $14 223
OTHER $736 700 $192 908
• ST Consultant 
• Expatriate advisers 
• Training/Media 
publications 
• Headquarter 
support 
• In-country office 
operations 
 
SUB TOTAL DIRECT 
COSTS $2 253 070 $844 819
 
INDIRECT COSTS 
OH@35% $841 500 $278 651
OH@10% $16 800 $4 867
 
 
SUBTOTAL INDIRECT $858 300 $283 518
 
TOTAL ALL COSTS $3 111 370 $1 128 337
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review J-4
 
ACTIVITIES BREAKDOWN 
Man 
Month 
Allocations
Allocation By 
Percentage 
Business Development 
(I) $262 902 7 23,33% 
Technical/Training (II) $338 501 9 30,00% 
Access to Credit (III) $301 266 8 26,67% 
Association Building (IV) $225 668 6 20,00% 
 30 
15month SUM: $1 128 337 
Source: Consultations with COP & DCOP 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review K-1
Appendix K 
IFDC/AMDA STAFF LIST 
 
# Name Position 
 
 
1 Manfred Smotzok Chief of Party 
Responsible for overall activities and implementation of the project. Supervising Access to 
Credit and Finance plus Business Development and Marketing. 
2 Ylli Bicoku Association & Business Development Advisor / Deputy Chief of Party 
Responsible for the project during absence of COP. Supervising activities concerning 
Association Building and Technical Training, Transfer and Private Extension Service. 
3 Anar Khalilov Business Development Specialist 
 
4 Farid Firidunov Association Development Specialist 
Responsible for Association Building and any kind of group formation. 
5 Manuchegr Askari Regional Coordinator (Ganja-Sheki) 
Responsible to control demonstrations and on-farm trials in collaboration with dealers and 
progressive farmers; organizing regional meetings and keeping contact with dealers and 
farmers; resource person for agric developments in the region. 
6 Nazakat Asadova Public Relations Specialist 
Responsible for project publication, printed media, TV and Radio. Organizing of workshops and 
seminars, information to public media. Writing and translating of extension material on Soil 
Science and Fertilizer. 
7 Nizami Garayev Technical Training & Innovation Transfer Specialist 
Responsible for all technical trainings concerning plant production and plant protection; 
organizing field demonstration and on-farm trials, introduction of new means of production such 
as drip irrigation and greenhouses. 
8 Oleg Shevtsov Credit & Finance & Marketing Specialist 
Responsible for Access to Credit and Finance, and Marketing. Administratively responsible for 
computer work and maintenance. 
9 Rena Azimova Office Manageress and Chief Accountant 
Responsible for accounting and staff matters 
10 Shahin Abbasov Technical Training, Transfer & Extension Service Specialist 
Responsible for technical training and extension service between project and dealers as well as 
dealers and progressive farmers; keeping relations with Farmer to Farmer Program 
implemented by ACDI/VOCA. 
11 Vafa Abbasova Secretary / Receptionist 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review K-2
IFDC/AMDA STAFF LIST 
 
# Name Position 
 
Responsible for reception, filling, office materials, translation, and general office work. 
12 Sanan Teymurov Driver 
 
13 Zarifa Mamedova Cleaning Lady 
 
14 Starting July 1: 
Kenul Media Specialist 
 Responsible for collection and distribution of market information via radio and TV; developing 
TV messages concerning agric inputs; public relation and marketing of project activities. 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review L-1
Appendix L 
Activities for the period March- December 2002 
No. Activity Units Person 
that 
delivered 
the 
seminar 
Regions Month Participants Total 
1. Seminars 
Project 
Introduction and 
Fertilizers Use 
8 Manfred, 
Ylli 
Sheki, Ismailli, 
Ganja, Masalli, 
Guba, 
Zaqatalla, 
Lenkoran 
May, July 
Sheki 7 
Ismailli 8 
Ganja 7 
Jalilabad 8 
Masalli 6 
Guba 7 
Zaqatalla 9 
Lenkoran 7 
59 
How to Design and 
Implement a 
Demonstration. 
Pesticide use 
5 Ylli Ismailli, Sheki, 
Guba, Ganja, 
Masalli 
May-June Ismailli 12 (12) 
Sheki 10 (7) 
Guba 13 (13) 
Ganja 14 (14) 
Masalli 12 (12) 
61 (58) 
Credit Sources 4 Oleg Masalli, Guba, 
Tovuz, Ismailli 
July, August, 
September 
Masalli 17 (17) 
Ismailli 21 (17) 
Sheki 22 (10) 
Tovuz 16 (12) 
76 (56) 
Gross Margin 4 Zaur & 
Nazakat 
Ismailli, Sheki, 
Ganja 
August
Ismailli 13 (7) 
Guba 12 (12) 
Ganja 18 (7) 
Tovuz 16 (12) 
59 (38) 
TSP Fertilizer Use 5 Ylli 
Ismailli, Sheki, 
Ganja, Masalli, 
Guba 
July, August 
September, 
 
“Wheat Growing 
Practices” 
5 Hiqmet 
Demiri 
Ganja, Sheki, 
Ismailli, Guba, 
Masalli 
September 
Guba 13 (10) 
Masalli 19 (16) 
Ismailli 20 (15) 
Sheki 19 (10) 
Ganja 24 (19) 
95 (70) 
Pest and Diseases 
in Wheat 4 Nizami 
Ganja, Ismailli, 
Masalli, Sheki 
September￾October 
Ganja 6 (6) 
Ismailli 16 (12) 
Masalli 19 (15) 
41 (33) 
Association 
Building 
5 Manfred 
Ismailli, Sheki, 
Ganja, Masalli, 
Guba 
October
Ismailli 13 (13) 
 Sheki 8 (8) 
 Ganja 15 (15) 
 Masalli 13 (13) 
 Guba 14 (14) 
63 (63) 
 
Winter Services 
and 
Diseases Control 
in Apple Orchards 
1 
Guba 
Research 
Institute 
and EMA 
company 
Guba November Guba 35 (16) 
35 (16) 
 
“Fertilizers and 
Marketing” 
6 Feisal 
Beig 
Ganja, Sheki, 
Ismailli, Guba, 
Masalli, Baku 
November 
Ismailli 13 (13) 
Ganja 22 (22) 
Sheki 12 (9) 
Masalli 15 (15) 
Guba 15 (15) 
Baku 4 (4) 
81 (78) 
 Total 47 570 (471) 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review L-2
Activities for the period January- December 2003 
No Activity 
Seminars 
Units Person that 
delivered 
the seminar 
Regions Month Participants Date 
1 By Law 
discussion 5 Ylli Bicoku 
Ismailli, 
Guba, 
Masalli 
Ganja, , 
Sheki, 
January 
19 (17 de) 
12 (12) 
22 (22) 
26(26) 
11 (11) 
90 (88) 
Ismailli 9 
January 
Guba 10 
January 
Masalli 14 
January 
Ganja 16 
January 
Sheki 17 
January 
2 Pest and 
Diseases in 
Potato 
3 Nizami 
Garayev 
Ganja 
Ismailli , 
Masalli 
January￾February 
27 (27) 
24 (21) 
28 (24) 
79 (72) 
Ganja 7 
January 
Ismailli 23 
January 
Masalli 7 
February 
3 Wheat 
Technology 
1 Norbert 
Zinck 
Ganja February 17 dealers +6 
farmers 
23 (17) 
Ganja 22 
February 
4 Fertilizer 
Marketing and 
Private 
Extension 
Service 
4 
Oleg 
Ylli 
Guba 
Ganja 
Sheki 
Ismailli 
February 
March 
14 (14) 
25 (25) 
16 (8) 
16(16) 
71 (63) 
Guba 21 
February 
Ganja 6 
March 
Sheki 7 
March 
Ismailli 19 
March 
5 Executive 
Council’s 
Election 
Procedures 
 Ylli Guba 
Masalli 
Ganja 
Sheki 
Ismailli 
February 
March 
14 (14) 
25 (25) 
25 (25) 
16 (16) 
16(16) 
96 (96) 
Guba 21 
February 
Masalli 28 
February 
Ganja 6 
March 
Sheki 7 
March 
Ismailli 19 
March 
6 Wheat and 
Potato top 
dressing and 
weeds control 
 Hiqmet 
Demiri 
Masalli February 
25 (25) 
Masalli 28 
February 
7 
Potato 
Technology
 William (Pet) 
Row 
ACDI/VOCA 
Consultant 
Masalli March 
24 (24) 
Masalli 25 
March 
8 Executive 
Council 
Members and 
Regional Vice 
Presidents 
Election 
 Ylli Guba 
Ismailli 
Ganja 
Sheki 
Masalli 
March 
April 
16(16) 
16(16) 
26 (26) 
8 (8) 
22 (22) 
88 (88) 
Guba 13 
March 
Ismailli 25 
March 
Ganja 26 
March 
Sheki 27 
March 
Masalli 1 
April 
9 Strategic Chan Baku April 13-16 Baku 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review L-3
Planning of 
Association 
(Ex Co and 
Regional Vice 
Presidents)
Sieben, 
Aziza 
Joldashova 17 
10 Training on drip 
irrigation 
 Yosi Galon Guba 
Jelalabad 
Guba 
Lenkoran 
 ( ) 
7 (7) 
4 farmers 
5 dealers 25 
farmers 
Guba 22 
April 
Jalilabad 24 
April 
Guba 16 
May 
Lenkoran 
21-23 May 
11 Seminar on 
Apples pest and 
diseases and 
weed controls 
in vegetables 
 
Nizami, Faik 
Sheki 25 dealers 6 May 
12 General Meeting Manfred, Ylli Baku 77 May 11-12 
 Total: 663 (507) 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review M-1
Appendix M 
Data of farmers for TSP on-farm trials 
Region: Village: 
Name of the farmer: _____ Name of the dealer: 
Interviewer: Date: 
Previous crop grown 
Date of Plowing 
Ploughing depth (cm) 
Soil Preparation 
How many times disking and when (date) 
Date of drilling 
Planting by machine or hand 
Wheat variety 
Seed treated (yes/no) 
Treated with: 
Planting 
Seed rate (kg/ha) applied 
Irrigation Irrigated land (yes/no), if yes when (date) 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review M-2
Herbicides applied(names and 
quantity) 
Pesticides applied (names and 
quantity) 
Which month they apply herbicides
 (date) 
Which month they apply pesticides
 (date) 
Pesticides 
Name of diseases, if any 
What kind of fertilizer is applied (and 
quantity) 
Fertilizers 
When is fertilizers applied (date)
 
 
Date of harvesting Harvesting 
Yiled per hectare 
 
What is your opinion regarding TSP
 
Are you plan to use TSP next season 
 
Weather observation (normal, too 
hot, to much rain), if yes which 
month: 
Comments
Other comments 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review N-1
Appendix N Azerbaijan Country Profile 
Government 
• Capital: Baku (Baki) 
• President: Heydar Aliyev 
• Prime Minister: Artur Rasizade 
Geography/Population/Economy 
• Area: 86,600 sq km, slightly smaller than Maine 
• Language: Azerbaijani (Azeri) 89%, Russian 3%, Armenian 2%, other 6% (1995 est.) 
• Currency: Azerbaijani manat (AZM) 
• Population: 7,771,092 (July 2001 est.) 
• Population Growth Rate: 0.32% (2001 est.) 
• Life Expectancy: male - 58.65 years, female - 67.49 years (2001 est.) 
• Infant Mortality: 83.08 deaths/1,000 live births (2001 est.) 
• Gross Domestic Product (GDP) Per Capita: purchasing power parity - $3,000 (2000 EST.) 
• GDP: purchasing power parity - $23.5 billion (2000 est.) 
• Real Annual GDP Growth: 11.4% (2000 est.) 
• Annual Inflation: 1.8% (2000 est.) 
Key Agricultural Statistics 
Cultivated Area of Agricultural Crops (1000 hectares) 1,162.3 Thousand 
hectares 
Livestock 
Pigs 16,853 heads 
Sheep & Goats 6,558,879 heads 
Cattle 2,097,860 heads 
Meat Production 114,056 tons 
Wheat 571,554 hectares 
Maize 30,860 hectares 
Potatoes 55,193 hectares 
Vegetables 84,218 hectares 
Melons / gourds 28,879 Hectares 
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review O-1
Appendix O 
USAID Presentation 
AMDA/IFDC REVIEW 1
REPORT FOCUS
ƒ Examine AMDA Activities
– Total budget: $3,111,370
– Up-to-date spending (15 months): $1,128,337
ƒ Describe How Program Implemented
– Business development (23.3%)
– Access to credit (26.7%)
– Technical transfer (30%)
– Association building (20%)
ƒ First National Association (AAIDA)
– 86-92 tentative members in 5 regions
AMDA/IFDC REVIEW 1
REPORT FOCUS
ƒ Examine AMDA Activities
– Total budget: $3,111,370
– Up-to-date spending (15 months): $1,128,337
ƒ Describe How Program Implemented
– Business development (23.3%)
– Access to credit (26.7%)
– Technical transfer (30%)
– Association building (20%)
ƒ First National Association (AAIDA)
– 86-92 tentative members in 5 regions
AMDA/IFDC REVIEW 2
REPORT FOCUS (Cont’d)
ƒ Provide Insight Into Improvements
– Overall assessment
– Few improvements needed
ƒ Suggest Future Intervention
– Model used is on target
ƒ Answer Set of Questions (Innovative Approach) 
– Further Understanding by reader
– Examining From Many Different Angles
AMDA/IFDC REVIEW 2
REPORT FOCUS (Cont’d)
ƒ Provide Insight Into Improvements
– Overall assessment
– Few improvements needed
ƒ Suggest Future Intervention
– Model used is on target
ƒ Answer Set of Questions (Innovative Approach) 
– Further Understanding by reader
– Examining From Many Different Angles
AMDA/IFDC REVIEW 3
ACCOMPLISHED CORE OBJECTIVES
ƒ Facilitate Technology Transfer
– To increase productivity of farmer
– Initially found 150, selected 86 - 90
ƒ Develop Input Dealers – Not Farmers Directly
– More sophisticated
– Better business acumen
– Second income
– Strengthen info-link to farmer
ƒ Many Humanitarian Agencies Currently Deal Directly With 
Farmers
– IFRC, ADRA, CHF, WVI, IRC, etc.
– 814,000 farm families AMDA/IFDC REVIEW 3
ACCOMPLISHED CORE OBJECTIVES
ƒ Facilitate Technology Transfer
– To increase productivity of farmer
– Initially found 150, selected 86 - 90
ƒ Develop Input Dealers – Not Farmers Directly
– More sophisticated
– Better business acumen
– Second income
– Strengthen info-link to farmer
ƒ Many Humanitarian Agencies Currently Deal Directly With 
Farmers
– IFRC, ADRA, CHF, WVI, IRC, etc.
– 814,000 farm families AMDA/IFDC REVIEW 4
ƒ Develop Market-Oriented Solution
– Private extension service, not government service
– Create Franchise For Input Dealers (Supply 22 Leaflets, 
7 Brochures and 7 Posters)
ƒ Input-Dealers Role as Transfer-Of-Information Crucial To 
Overall Success
– Quality/quantity inputs equal quality/quantity outputs
ƒ Sell Inputs by Increased Productivity of Farmer Customers
ƒ Raising the Tide Raises All Boats
– Mission goal SO 1.3
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
AMDA/IFDC REVIEW 4
ƒ Develop Market-Oriented Solution
– Private extension service, not government service
– Create Franchise For Input Dealers (Supply 22 Leaflets, 
7 Brochures and 7 Posters)
ƒ Input-Dealers Role as Transfer-Of-Information Crucial To 
Overall Success
– Quality/quantity inputs equal quality/quantity outputs
ƒ Sell Inputs by Increased Productivity of Farmer Customers
ƒ Raising the Tide Raises All Boats
– Mission goal SO 1.3
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
AMDA/IFDC REVIEW 5
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
ƒ Teach Dealers How to Develop Demonstration Plot and 
Farm Trials.
– Potatoes + 4 plots – Maize & alfafa = 4 plots
– Vegetables = 3 plots – Wheat = 4 plots
– Apples = 4 plots – TOTAL = 19 plots
– Expected results = WOW!
– Total = 230 trials
ƒ Trials and Demonstration Plots Efficient for Distributing the 
Evaluation of Results.
– All near highway or neighboring farm
– Word-of-mouth
ƒ Undeniable Physical Attributes of Larger Plants, Healthy 
Plants and Abundant Fruit AMDA/IFDC REVIEW 5
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
ƒ Teach Dealers How to Develop Demonstration Plot and 
Farm Trials.
– Potatoes + 4 plots – Maize & alfafa = 4 plots
– Vegetables = 3 plots – Wheat = 4 plots
– Apples = 4 plots – TOTAL = 19 plots
– Expected results = WOW!
– Total = 230 trials
ƒ Trials and Demonstration Plots Efficient for Distributing the 
Evaluation of Results.
– All near highway or neighboring farm
– Word-of-mouth
ƒ Undeniable Physical Attributes of Larger Plants, Healthy 
Plants and Abundant Fruit
AMDA/IFDC REVIEW 6
ƒ Business Skills Training Less Dramatic
ƒ Demand Creation – Not Just Project Adding to Supply
– Demand creation for inputs
– Need attention to derive demand issues on outputs
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
AMDA/IFDC REVIEW 6
ƒ Business Skills Training Less Dramatic
ƒ Demand Creation – Not Just Project Adding to Supply
– Demand creation for inputs
– Need attention to derive demand issues on outputs
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review O-2
AMDA/IFDC REVIEW 7
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
ƒ Knowledge to Obtain Credits
– Over 100 dealers now know
– Credit not a gift, must be repaid
– Information disseminated for
– Availability of credit
ƒ Prevailing interest rates
ƒ Terms and conditions
ƒ Collateral requirements and registration
ƒ Ethics and methods for developing business plan
ƒ Adam Smith = self-interest
ƒ No contract law, no antitrust law
− Techniques for filling out credit applications AMDA/IFDC REVIEW 7
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
ƒ Knowledge to Obtain Credits
– Over 100 dealers now know
– Credit not a gift, must be repaid
– Information disseminated for
– Availability of credit
ƒ Prevailing interest rates
ƒ Terms and conditions
ƒ Collateral requirements and registration
ƒ Ethics and methods for developing business plan
ƒ Adam Smith = self-interest
ƒ No contract law, no antitrust law
− Techniques for filling out credit applications
AMDA/IFDC REVIEW 8
ƒ No program for medium or large Entrepreneurs for capital 
expenditures related to increase productivity of outputs.
– Apple story
– Storage needed
ƒ Project is 243% ahead in the number of clients receiving 
credits.
– Was 5 projected, now 26 at midpoint
ƒ Lack of Registration Does Not Materially Affect Operations
– Project administration of checking account
– No grants allowed
– Currently have $2300 collected
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
AMDA/IFDC REVIEW 8
ƒ No program for medium or large Entrepreneurs for capital 
expenditures related to increase productivity of outputs.
– Apple story
– Storage needed
ƒ Project is 243% ahead in the number of clients receiving 
credits.
– Was 5 projected, now 26 at midpoint
ƒ Lack of Registration Does Not Materially Affect Operations
– Project administration of checking account
– No grants allowed
– Currently have $2300 collected
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
AMDA/IFDC REVIEW 9
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
ƒ Develop Good Feeling Of Networking - In Numbers Is Strength 
ƒ Can Affect Environment, Government Issues - Market Power 
Issues
ƒ Can Discuss Common Problems And Develop Collective 
Solutions
ƒ Can Improve Coordination Between Ministry And Private Sector
ƒ Advocacy Success In The Recent Time
– AAIDA President (Before Association Formed) Spear Heads 
Implementation Of Wheat Support Program. 
– PAPA Activity Spear Heads Ice Cream Sales On Streets Of 
Baku.
– Dramatic Reduction Of Licensing Requirements From 280 
Down To 30 (Only 10% For Agriculture) AMDA/IFDC REVIEW 9
ACCOMPLISHED CORE OBJECTIVES (Cont’d)
ƒ Develop Good Feeling Of Networking - In Numbers Is Strength 
ƒ Can Affect Environment, Government Issues - Market Power 
Issues
ƒ Can Discuss Common Problems And Develop Collective 
Solutions
ƒ Can Improve Coordination Between Ministry And Private Sector
ƒ Advocacy Success In The Recent Time
– AAIDA President (Before Association Formed) Spear Heads 
Implementation Of Wheat Support Program. 
– PAPA Activity Spear Heads Ice Cream Sales On Streets Of 
Baku.
– Dramatic Reduction Of Licensing Requirements From 280 
Down To 30 (Only 10% For Agriculture)
AMDA/IFDC REVIEW 10
CONSTRAINTS TO FINANCING ISSUES
ƒ Major Need for Larger Amounts To Cover Capital Expenditures 
(not cash flow needs)
ƒ Limited Branch Representations Outside of Baku
ƒ State Financial Organizations Feared For Tax Collecting 
Reasons
– Need bribes
– Turn over data to tax authorities
ƒ High Interest Rate
– 18% - 30%
– Low interest, 7% loans, politically connected
ƒ Restrictive Terms And Conditions
– Maximum term is 18 months AMDA/IFDC REVIEW 10
CONSTRAINTS TO FINANCING ISSUES
ƒ Major Need for Larger Amounts To Cover Capital Expenditures 
(not cash flow needs)
ƒ Limited Branch Representations Outside of Baku
ƒ State Financial Organizations Feared For Tax Collecting 
Reasons
– Need bribes
– Turn over data to tax authorities
ƒ High Interest Rate
– 18% - 30%
– Low interest, 7% loans, politically connected
ƒ Restrictive Terms And Conditions
– Maximum term is 18 months
AMDA/IFDC REVIEW 11
CONSTRAINTS TO FINANCING ISSUES (Cont’d)
ƒ Harsh Collateral Requirements
– 200% requirement
– Only jewelry, vehicles and real estate inside of city.
– No collateral in real estate outside of Baku 
ƒ Reluctance To Disclose True Financial Conditions
– Poor Record-Keeping
AMDA/IFDC REVIEW 11
CONSTRAINTS TO FINANCING ISSUES (Cont’d)
ƒ Harsh Collateral Requirements
– 200% requirement
– Only jewelry, vehicles and real estate inside of city.
– No collateral in real estate outside of Baku 
ƒ Reluctance To Disclose True Financial Conditions
– Poor Record-Keeping
AMDA/IFDC REVIEW 12
SUGGESTED ENHANCEMENTS
FOR CONSIDERATION
ƒ Review strategic plan to develop companion program to 
train in issues of marketing of agro outputs
ƒ Do exports first on competitive homogeneous commodities 
as skills will spill over into domestic market skills. (Double 
benefit for investment $$)
– Might consider meat/dairy value-added being ready
ƒ Expand Trade/Information Visits, Especially To Developed 
Economies (USA, EU)
ƒ Reassess Impediments To Start-up Delays
– Eliminate hoops
AMDA/IFDC REVIEW 12
SUGGESTED ENHANCEMENTS
FOR CONSIDERATION
ƒ Review strategic plan to develop companion program to 
train in issues of marketing of agro outputs
ƒ Do exports first on competitive homogeneous commodities 
as skills will spill over into domestic market skills. (Double 
benefit for investment $$)
– Might consider meat/dairy value-added being ready
ƒ Expand Trade/Information Visits, Especially To Developed 
Economies (USA, EU)
ƒ Reassess Impediments To Start-up Delays
– Eliminate hoops
International Center for Soil Fertility and Agricultural Development (IFDC), Mid-Term Review O-3
AMDA/IFDC REVIEW 13
SUGGESTED ENHANCEMENTS (cont’d)
ƒ Set Benchmarks For Result Indicators
ƒ Increase Quantitative and Qualitative Quarterly Reports
ƒ Set Indicators That Can Measure True Progress (reflect 
benefits accrual)
– Benefits flow to farmers
ƒ Include Cost-Accounting Decision-Making Training (to 
improve quality of business planning)
– Cost bread-even point
– Shut-down point
– Help get bankers’ confidence
AMDA/IFDC REVIEW 13
SUGGESTED ENHANCEMENTS (cont’d)
ƒ Set Benchmarks For Result Indicators
ƒ Increase Quantitative and Qualitative Quarterly Reports
ƒ Set Indicators That Can Measure True Progress (reflect 
benefits accrual)
– Benefits flow to farmers
ƒ Include Cost-Accounting Decision-Making Training (to 
improve quality of business planning)
– Cost bread-even point
– Shut-down point
– Help get bankers’ confidence
AMDA/IFDC REVIEW 14
SUGGESTED ENHANCEMENTS (cont’d)
ƒ Association Fee-Based Services Possible
– System of Transportation And Coordination (trucks and 
rail)
– Develop Collection Points For Transshipments
– Develop Regional Storage Facilities
ƒ Separate Entity Onl
ƒ For-profit whole/partial ownership
– Develop Quality Control Laboratory (seal-of-quality 
verification) plus more
ƒ USDA grading service
AMDA/IFDC REVIEW 14
SUGGESTED ENHANCEMENTS (cont’d)
ƒ Association Fee-Based Services Possible
– System of Transportation And Coordination (trucks and 
rail)
– Develop Collection Points For Transshipments
– Develop Regional Storage Facilities
ƒ Separate Entity Onl
ƒ For-profit whole/partial ownership
– Develop Quality Control Laboratory (seal-of-quality 
verification) plus more
ƒ USDA grading service
AMDA/IFDC REVIEW 15
SYNERGY EFFECTS
With the new RECP project starting in second half of 2003 and 
agriculture activities envisaged by Peace Corps in early 2004 
synergy effects have to be sought for.
When both projects start working details are to be discussed 
and agreed upon in areas such as farming practices; quality of 
production; product supply over time; organization of farmers 
related to quality and quantity of production for fresh product 
trading or processing; rural collection points; trade relationship 
building between producers and traders/processors as well as 
processing industry; output marketing; etc. 
Output is only as good as the input.
AMDA/IFDC REVIEW 15
SYNERGY EFFECTS
With the new RECP project starting in second half of 2003 and 
agriculture activities envisaged by Peace Corps in early 2004 
synergy effects have to be sought for.
When both projects start working details are to be discussed 
and agreed upon in areas such as farming practices; quality of 
production; product supply over time; organization of farmers 
related to quality and quantity of production for fresh product 
trading or processing; rural collection points; trade relationship 
building between producers and traders/processors as well as 
processing industry; output marketing; etc. 
Output is only as good as the input.