FARMA II
Contribution ID : SE-0-SE-6-55060027This website displays open data about Swedish aid, which shows when, to whom and for what purpose Swedish aid is paid out, as well as what results it has produced. This page contains information about one of the contributions financed with Swedish aid.
This project will leverage minimum 3,5 MUSD from the private sector through the grant scheme alone. It is expected that the private sector participation in funding will be even higher than the minimum 50%, but can not be predicted with precision at this stage. Contribution in kind, from the public sector, will be mainly in labour from the public servants, and ...
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This project will leverage minimum 3,5 MUSD from the private sector through the grant scheme alone. It is expected that the private sector participation in funding will be even higher than the minimum 50%, but can not be predicted with precision at this stage. Contribution in kind, from the public sector, will be mainly in labour from the public servants, and could be measured in man-hours. The goal of the FARMA II project is to increase trade and exports of BiH food products with the aim of increasing economic growth and advancing BiH’s accession into the European Union (EU). The purpose of the project is to 1) create agricultural and agri-business economic opportunities by assisting agricultural producers in adopting EU and international food standards and new production techniques, producing new high-value products, and expanding domestic and international market access of producers, and 2) assist BiH government agencies to implement regulations related to food and agricultural products that meet EU and international requirements.FARMA II will have two main components and a cross-cutting Small Grant fund to support the main two objectives. Component 1: Main objective is strengthened agricultural producer organisations (POs) that have adopted EU and international food standards, production techniques, and produce new high value products and have expanded markets. Component 2: Main objective is strengthened BiH public sector that fully implements regulations, norms, practices, and rules in the areas of food, veterinary and plant health and safety, accreditation, standardisation, and quality certification related to food and agricultural products and meets EU and international best practice requirements.The 2014 EU Country Progress Report issued in October 2014, concluded that there is “a generally low degree of competitiveness” in BiH. Extensive reform efforts need to be pursued to enable BiH to cope over the long-term with the competitive pressures and market forces within the EU. By increasing the economic activity of the agribusiness sector in BiH, this project will help BiH develop capacity at a local level to cope with market pressures and competitive forces within the EU. Assistance will focus on increasing the capacity of all local actors (associations, enterprises, cooperatives, policy makers and regulatory bodies) for meeting EU accession requirements related to agriculture and a functioning market economy. Activities and expected results of this project fall under the “Market development” pillar of the strategy and focus on both the private and public sectors. USAID BiH is operating under an approved Country Development Cooperation Strategy (CDCS) for 2012-2016 period. Their strategic goal is that BiH is a more stable country closer to Euro-Atlantic integration. Reaching this goal requires functional state-level institutions, inclusion of minorities in the political process, compliance with the European Convention on Human Rights, GDP growth, increased economic competitiveness, and a clear strategy for EU accession. CDCS has two development objectives (DO) to achieve the overarching goal. The democracy and governance DO focuses on functional and accountable institutions and actors that meet citizens’ needs; the economic growth DO focuses on a market-oriented economy. The approaches to both DOs reinforce each other and support the achievement of USAID BiH’s overarching goal. The Project will contribute to the development of “a competitive, market-oriented economy providing better economic opportunities for all its citizens” (DO) and to:- Improved capacity of the private sector to compete in market economy; and - Improved economic aspects of governance relevant to business activity.
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Result
FARMA II project during its implementation measured achievements as follows: - Reach: over 3,500 Producer organizations (POs) and 235 public agencies received assistance from FARMA II through grants, subcontracts, direct technical assistance (TA), or promotional activities. By the end of the project, FARMA II assistance reached POs responsible for over 90% of sub-sector output. -Sales and exports: between 2015 and 2019, project-assisted POs increased net sales by 29.7% and exports by 64.4%. However, the evaluation impact report states that FARMA II did not show strong and lasting effects at the sub-sector level, though occasional and temporal effects can be noted. - Assistance in securing new export markets for key goods: with significant support from FARMA II, BiH secured EU approval to export of poultry meat and eggs to EU countries for the first time. In 2020, BiH exported poultry goods to EU markets, accounting for over 24% of total poultry exports that year, however the project more contributed to increased national trade of poultry and dairy - Facilitation of key improvements in the agriculture policy and enabling environment: FARMA II drafted 31 laws, regulations, or guidelines related to food and agriculture to bring BiH regulations more in line with EU acquis requirements. The project also played a key role in the development and adoption of the Strategic Plan for Rural Development (SPRD) of BiH (2018-2021). - Strengthening the legal and regulatory infrastructure to allow for future export growth. FARMA II trained staff of 235 different public sector organizations in BiH, and assisted 12 public sector organizations and 3 private laboratories to gain accreditations in accordance with EU acquis and market requirements. - Creating the foundation for and aided the transition to the next generation of agriculture sector investments in BiH including support in preparation of SPRD to attain eligibility for additional financial and technical support for the agriculture sector in particular the EU Instrument for Pre-Accession Assistance (IPA), - Expanding number of farmers certified and meeting international market standards: FARMA II assisted 111 companies and 838 individual farmers to obtain international certifications and meeting various ISO and IFS standards. - Financing capacity improvements for POs i.e FARMA II awarded 186 grants. Grant - giving had a strong component of matching grants, as a POs´on average contributed with approximately 75% self-financing which is postive sign in terms of sustainability. - Generating additional employment: project-supported POs created over 1,000 additional full-time jobs and upwards of 10,000 seasonal jobs, with gains in each sub-sector. The project also provided training to 5,916 workers in the MAP and Honey sub-sector. The evaluation report notes that indicators on measuring job creation have weaknesses provided that seasonal employment cannot be measured in a reliable way. Further, employment indicator is also problematic in describing development and income effects in specific sub-sectors. - Providing support to women farmers and entrepreneurs: The project consistently exceeded annual inclusion targets, and over the life of the project saw women constitute 39.3% of participants in FARMA II activities. The project specifically targeted assistance toward women, youth, and other marginalized groups. - Supporting small POs to cope with COVID-19 pandemic: FARMA II presented a series of webinars to help train 70 small POs in conducting online sales, promotion, and marketing in response to pandemic-related shutdowns and disruptions.
The development hypothesis (theory of change) is:When public institutions and the private sector effectively implement EU and international regulations related to food and agriculture production, processing and trade, then sales and exports of agricultural and food products will increase, and by so improve the lives of citizens in BiH. FARMA II is a joint venture with USAID and a continuation of the first FARMA project that was also conducted together with USAID. USAID is the "lead" and holds the contract with the implementing party, Cardno. Sweden has an agreement with USAID on co-financing. Total Swedish allocation: 87,000,000 SEK, of which 2,000,000 is allocated for evaluations, the majority for a final evaluation. FARMA II supports four subsectors in the agricultural and food producing sector; fruits and vegetables, poultry, dairy products, honey and aromatic plants. The project works with both the private and public sectors, and has two components in which one focuses on supporting producers and the other to strengthen legislation, regulation and its implementation in order to live up to international standards. The goal is - to strengthen agricultural producer organisations that have adopted EU and international food standards, production techniques, and produce new high value products and have expanded markets. - to strengthen BiH public sector to implements regulations, norms, practices, and rules in the areas of food, veterinary and plant health and safety, accreditation, standardisation, and quality certification related to food and agricultural products and meets EU and international best practice requirements.
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