Evaluation of the USAID-Kosovo SME and Agriculture - Economic ...

Development Associates, Inc.KOSOVO EMERGENCY AGRI-INPUT PROGRAM (KEAP)BACKGROUNDThe Kosovo Emergency Agri-Input Program (KEAP) was started by USAID immediatelyfollowing the war in October 1999 to address the urgent needs of the agricultural sector with anassessment of the farm input requirements and an activity to organize and mobilize private sectorsupply networks. KEAP was implemented by the International Center for Soil Fertility andAgricultural Development (IFDC) under a direct grant agreement. This was the initial USAIDproject dealing with the agricultural sector. KEAP was implemented for one year and providedthe foundation for the follow-on Kosovo Agribusiness Development Program (KADP) and otherprojects.KEAP OBJECTIVESrapid assessment of agri-input needs for spring 2000 season.identify type emergency agri-inputs needed and how delivered.identify suppliers of inputs willing to participate.establish linkages between Kosovo suppliers and regional input suppliers.disseminate basic market information regarding inputs.assess input credit needs and delivery systems.assess war damage repair needs of input supply installations.develop emergency plan for jump-starting selected agribusinesses.assess priority policy issues regarding private input supply and ag sectorGENERAL PROGRAM DESCRIPTIONNGOs distributed seed, fertilizer, and pesticides valued at about $10 million (25%) of the springplanting needs. The $30million balance was organized through private dealers with their owncapital and the help of a $10m revolving credit fund. IFDC helped start up the Kosovo Dealersin Agri-inputs Association (KODAA) as the supplier’s organization. During this period and inthe follow-on KADP project, additional associations were started, including: Kosovo FlourMillers Association (SHMK), The Kosovo Association of Poultry Producers and FeedManufacturers (SHPUK) and the Alliance for Kosovo Agribusinesses (AKA), the umbrellaassociation of associations.IMPLEMENTATIONInput supply was clearly the major requirement in the emergency period and targeting the privatesector suppliers to mobilize and implement the importation and distribution of the inputs. Thisapproach by IFDC worked better than an attempt to manage the entire input supply operationitself might have, as is often done in emergency situations.IFDC’s knowledge of Kosovo and its agribusiness sector, and its on-site capacity to movequickly were clearly the major strengths in getting this project implemented. A weakness, ifthere was one in this situation, was the inability to affect the policy apparatus that imposed theimport duties and VAT on agricultural inputs, excepting fertilizer.Evaluation of the USAID/Kosovo SME 79 May 2004and Agriculture/Agribusiness ProgramsVolume I