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SEP Drip Annual Report 2013 1

ON-FARM WATER MANAGEMENT PROJECT

DRIP IRRIGATION COMPONENT

Annual Report 2013

Preparedby: Daniiar Andakulov, Drip Irrigation Project Coordinator

Version Final draft to be submitted to iDE

Lastupdate 28.01.2014

Approved by: Christian Steiner, Country Director


1. Table of Content

1. Table of Content ................................................................................................................................... 2

Abbreviations ................................................................................................................................................. 3

2. Executive Summary .............................................................................................................................. 5

3. Introduction ........................................................................................................................................... 6

4. Chronology January – December 2013 ................................................................................................ 7

5. Comparison of Achieved Results versusExpected Results .................................................................. 9

6. Gender and Social Equity ................................................................................................................... 29

7. Lessons learnt and Conclusions ......................................................................................................... 30

8. Outlook................................................................................................................................................ 33

Figures: Figure 1. Activities of project and partners .................................................................................. 6 Figure 2. Aggregated vegetable production and aggregated orchard production ................................ 11 Figure 3. Production of tomatoes and cucumbers in Osh and Jalalabad oblasts (2008 year was taken as a base year with 100%) .......................................................................................................... 12 Figure 4. Budget allocation to promotional activities .................................................................... 16

Figure 5.Sales growth trend in 2011 – 2013 .............................................................................. 17 Figure 6. Dynamics of sales in 2014 ........................................................................................ 17 Figure 7. Sales by partners ................................................................................................... 19

Figure 8. Sales growth in 2012 – 2013 in each oblast .................................................................. 19

Figure 9. Proportion of sales to North and South in 2012 - 2013 .................................................... 20 Figure 10.Number of people participated ToT trainings over the past three years 2011 - 2013 .............. 22 Figure 11. Comparison of drip irrigation technology and traditional irrigation method ........................... 23

Figure 12. Drip design manual ............................................................................................... 24 Figure 13. Surface drip irrigation system installation manual/ User`s guide ....................................... 24

Figure 14. Supply Chain of drip irrigation .................................................................................. 26 Figure 15. Profitability analysis of Agro Bazar, 2011- 2013 ........................................................... 28 Figure16. Characteristics of vulnerability .................................................................................. 29

Tables: Table 1. Chronology of the most important events of Drip Project during time span of January -

December 2013 ................................................................................................................... 7 Table 2. Set of promotion materials ......................................................................................... 14


Abbreviations

AB Agro Bazaar Agricultural Service Cooperative (wholesaler for sales of drip irrigation systems)

AFLU Association of forest and land users of the KR

ASP Agricultural Service Providers

BCP Organic Cotton Production and Trade Promotion Project

DIS Drip irrigation system

HSI HELVETAS Swiss Intercooperation

iDE International Development Enterprises

LMD Local Market Development project

GSE Gender and Social Equity

RAS Rural Advisory Services

RT Retailer

SDC Swiss Agency for Development and Cooperation

SEP Efficient Use of Water (Suunu Effectivduu Paidalanuu) Project

ToT Training of Trainers

WS Wholesaler

YPO Yearly Plan of Operations

ZOKI Centre for Training, Consultancy and Innovation (Zentro butschenija konsultantii I innovatsii)


Drip Project at a Glance / Project Activities Map

18%

14%

15%7%

0%0%

20%

40%

60%

80%

100%Age below 25

Women

Having 5 dependentsLiving in disaster prone area

Living > 40 km from rayon center

Characteristics of vulnarability

Ряд1

Market testing of profitability of drip irrigation systems (DIS) sale at all levels (of participants) of the supply chain and efficiency of using

drip irrigation technology at the farm level are assessed.Project Goal:

Jalalabad

OshBatken

Issyk-

Kul

Naryn

Talas

Chui

2013 138,8 308,2 140,1 248,2 23,5 11,8 223,4

2012 98,7 214,6 76,2 6 9 3,2 101,8

0

50

100

150

200

250

300

350

KG

S in

th

ou

san

ds

Sales growth comparison by oblasts in 2012-2013

Promotion:

Fairs participated in:

TV channel that

covers oblasts

Demonstration plots

ToT trainings

Capacity Building:

0

10

20

30

40

50

60

Number of people participated ToT and learned about the drip installation

number ofpeople

Sales

proportion

28

0

5

10

15

20

25

30

J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N

2009 2010 2011 2012 2013

IRR

IGA

TED

AR

EA (

HA

)

Cumulative additional area under irrigation, up to July 2013 – Kyrgyzstan

195

0

50

100

150

200

250

J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N

2009 2010 2011 2012 2013

CLI

ENTS


2. Executive Summary

In 2009 the On-Farm Water Management (SEP) project conducted trials of drip irrigation kits in

demonstration plots together with the Local Market Development (LMD) project. Based on positive

feedbacks from demo-farmers / partners and funding available from International Development

Enterprises (iDE) with co-funding of Helvetas Swiss Intercooperation (HSI) a component on drip

irrigation started under the umbrella of the SEP project in 2010. The component was added in the

log-frame of the SEP project as Expected Result #4 (further just ER4) with the aim of conducting

market testing to assess the potential of the local market for drip irrigation systems:

Market testing of profitability of drip irrigation systems (DIS) sale at all levels (of participants)

of the supply chain and efficiency of using drip irrigation technology at the farm level are

assessed.

However, the intervention approach of the drip irrigation component (being more a market based

approach) was very different from the intervention approach of SEP project. Therefore, the

management of drip irrigation component was separated in 2013 from the SEP project. Daniiar

Andakulov has become responsible for general project coordination and Jyldyz Abdyllaeva (Project

Manager SEP) remaining as project backstopper (with 20% workload). The concept on intervention

approach, project activity plans and project reporting are done independently from SEP. Activities in

Drip Irrigation System (DIS) promotion are co-funded by the iDE from funds provided through the

“Scaling up of Productive Water Use” global project of the Swiss Development Cooperation (SDC).

In 2010 a first container with hardware worth USD 16,000 was imported from India by ZOKI, who

was the main project partner at that time. ZOKI was a wholesaler of DIS and at the same time

technical backstopping provider to other partners (retailers).

In 2011 the first year of sales started and reached the level of USD 5,700. Awareness of clients

on DIS was low and limited to a general stereotype that DIS is a sophisticated and expensive

irrigation system. Throughout the year awareness raising and promotion activities helped to improve

the situation and generate first sales of DIS. ZOKI had a role of Wholesaler (WS) and also technical

backstopper to the network of retailers in the South.

In 2012, the second year of testing, promoting and subsequent selling of drip irrigation systems

further developed. The agricultural Service Cooperative Agro Bazar (further just AB) joined the drip

supply chain in a role of new Wholesaler. The Network of retailers (RT) was enlarged. Sales in 2012

were overreached and constituted USD 12,700 in both the South and the North of the country.

In order to continue with the positive development trend sales target for 2013 were fixed at rate of

19,000 USD (which makes 50% increase compared to 2012). Road map towards achievement of the

targeted goal was building on 4 main pillars of work: (i) Quality and price, (ii), Technical support, (iii)

Supply chain, and (iv) Promotion and sales. Sales in 2013 again overreached the target by 27%,

(77% more than the sales in 2012) which constituted USD 22,500 in the whole country (South

and North of Kyrgyzstan).2013 is marked as a year of passing KGS 1’000’000 in sales.

Expansion to North was well done. Almost half of sales came from clients in the North. Due to the

high potential of demand in the North and limitation of capacities of AB to cover sales overall the

country, a mini tender was announced within drip project partners in order to select a second

wholesaler, which will work with focus in North of Kyrgyzstan. The decision of project support to the

second wholesaler was due to (i) avoid a monopoly of wholesales in the market and create a

competition among actors, (ii) give an option for RT`s to choose, (iii) since sales picked up in North,

to keep warehouse and wholesaler with a focus on North which also avoids constant transportation

of goods from South to North, and (iv) increase the scope and scale of sales.

Based on a tender announced in November and two applications submitted from Association of

Forest and Land Users in Kyrgyzstan (AFLU) and Agricultural Service Cooperative (ASC) “Caplya

Plus”, the ASC “Caplya Plus” was selected by decision of panel as a wholesaler for the North

(Please see Annex A for decision-making note).


3. Introduction

3.1. Background

In Kyrgyzstan first attempts to adopt drip irrigation technology were done during the Soviet times, but

were not successful. Drip irrigation technology as such has an image of a sophisticated and

expensive irrigation technology which is hardly affordable for local farmers.

A first container with low-cost drip irrigation material from India was imported from India (partner of

IDE India) within SEP project under the component of drip irrigation in 2010 to break down the

established stereotype of technology of drip irrigation. Sales under drip irrigation component of SEP

started in 2011. Project is co-funded from the iDE under the global SDC funded project "Scaling up

of productive water use".

3.2. Project Description

Objective of the project component:

Market testing of profitability of drip irrigation systems (DIS) sale at all levels (of participants) of the

supply chain and efficiency of using drip irrigation technology at the farm level are assessed.

Implementation of this project component is done based on experience of HSI Kyrgyzstan on market

development projects (like LMD, BCP).

Main activities of project and partners are as follows:

Figure 1. Activities of project and partners

Farmers are provided with qualitative DIS

with guarantee and at affordable prices product development: importing better and

new types of drip irrigation systems and

other micro-irrigation technologies

pricing mechanisms (wholesales)

Effective targeted promotion of DIS and

awareness raising of farmers about DIS is

done (to boost the sales)

awareness and promotion actions

(commercial through local TV channels,

demo-plots, open field days, fairs and

exhibitions etc.)

sales of DIS

Building and strengthening capacity of

supply chain actors by use of practical

methods in drip irrigation technologies technical TOT trainings, coaching on

technology of drip irrigation (designing,

irrigation regime, installation)

production of training materials (Drip

design manual, Users' manual)

Close and mutually beneficial

cooperation between the supply chain

actors (wholesaler, retailers) and SEP

built up regular meetings of partners for

coordination of joint activities

linkages to new actor of supply chain

sales data management

Activities of

project &

partners


4. Chronology January – December 2013

Table 1. Chronology of the most important events of Drip Project during time span of January -

December 2013

Month Key events / Milestone

January • Conducting of the kick-off workshop with all partners on the drip irrigation

component

February • Recruitment of a specialist for Agro Bazar on drip irrigation component – Dinara

Sydykova

• Participation in the 9th Agro Expo Fair “Silk Road” in Osh

• Coordination meeting of drip partners

• Coordination meeting with partners in the North

March • Signing of collaboration agreements with wholesaler (WS) and retailers (RT)

• Mission of Mr. Nguyen Van Quang, iDE Vietnam consultant with business

support backstopping mission

• First visit of consultancy mission of Markus Brauchli, iDE

• Next in turn coordination meeting of drip partners

April • Exploration mission to Tajikistan in a team of Markus Brauchli, iDE and Daniiar

Andakulov, Jyldyz Abdyllaeva of SEP Project

• Participation in Conflict Resolution training implemented by International Alert


May • Participation in the M4P training conducted by Evgeniy Ryazanov in Dushanbe,

Tajikistan

• Finalization of all PR materials and distribution to partners

• Participation in the first International Agricultural Exhibition "AYIL-AGRO" in

Bishkek in order to increase the awareness of drip irrigation system in North of

Kyrgyzstan

• Participation in the Steering board of SEP project

• Monitoring of all demo-plots of RT and settlement of demo-plots

June • Participation in the Intercultural Communication workshop

• Opening ceremony of new HSI Osh office

• Second visit of mission of Markus Brauchli, iDE

• Participation in the ToT on designing and installation of drip system in the South


July • Warranty certificate for drip irrigation components is developed and introduced to

partners

• Product Catalogue is updated

• New publication materials are developed

August • Participation at the festival KARAGAT+ organized by AVEP Public Fund for

promotion of drip irrigation in IssykKul region

• Conducting a coordination meeting with drip project partners

• Conducting a ToT training in Issyk-Kul oblast


• Organizing a field day in Bokonbaeva, Issyk-Kul

• Organizing a field day in Pokrovka, Issyk-Kul

September • Participation to the AgroProdExpo fair in Bishkek

• Water wheel 1is adapted and developed

• Meeting with Spanish greenhouse and micro irrigation system manufacturers like

VYRSA, ULMA and ININSA in Bishkek

October • Participation at the M4P training in Osh

• Participation at the DCED training in Bishkek

• The Strategic Control visit by Vice-President Therese Froesch and Board

Member Rudolf Dannecker and Lydia Pluess, Programme Coordinator for

Central Asia

• Participation to the field day and monitoring of RT in Isfana, Batken

• Final order of drip irrigation components from China for 2013 is arrived

• Final coordination meeting with drip project partners is conducted

• Monitoring of all demonstration plots is done

November • Drip installation guideline (User Manual) is developed and published

• Drip design manual is finalized and published

• Drip catalogue is finalized with last ordered Chinese goods

• Water wheel for orchards is developed

• A mini-tender on selecting of a second wholesaler for North of Kyrgyzstan is

announced among drip project partners

• Analysis workshop of 2013 is conducted among drip project partners

• Third visit iDE backstopper, Markus Brauchli, with a planning mission of drip

irrigation project Phase II 2014-2017

• Conducting a planning workshop of drip irrigation project Phase II 2014-2017

December • Participation at knowledge sharing workshop (introduction of Pamoja and PR

strategy of HSI KG)

• Selecting a second wholesaler in North among interested applicants

• Finalizing financial reports, tranches of partners

• Training on “Effective sales skills” was conducted by LLC “The Center for

Training and Consulting” to drip project partners

• Finalizing the sales of 2013

• Analysis of efficiency of drip irrigation system is finalized

• Cost – Benefit analysis of supply chain actors (wholesaler, retailers, farmers) is

finalized

• Market potential analysis is finalized

1 A tool to identify water consumption, from iDE adapted to local context


5. Comparison of Achieved Results versusExpected Results

In this chapter, project progress according to the Sub-Objectives of the Expected Result 4 is

reported.

5.1. Farmers are provided with qualitative DIS with guarantee and at affordable prices.

Process:

Price

The prices of WS were jointly revised and adopted in the first coordination meeting of partners. The

pricing of goods on WS’s level is done transparently – the WS’s margin is 30%. Pricing on the level

of RTs is not regulated and not monitored, the RT are free to fix their sales margin. The price list of

AB and the updated list of warehouse are available in the updated 2013 catalogue of AB. Please see

Annex Bfor the pricelist of all drip irrigation components.

Inventory of warehouse of WS is conducted regularly. At the beginning of January 2013 (end of

sales year 2012) balance of warehouse of AB was 835,340 som, out of it 313,132 som was

hardware of Indian goods and 522,208 som was Chinese goods. The remains of Indian goods in

amount of 313,132 som were suggested to be given for discounting of price in 2013, because the

specifications of remaining part of hardware did not fit to the existing goods of warehouse (diameter

of tubes and filters).

Quality

Quality of new goods (the Chinese DIS) is good. Problems with quality of drip systems (like in 2012

with Indian goods) did not happen in 2013. Warranty certificate was updated jointly with partners on

the basis of warranty used in project in 2011. Warranty is given for components for one year.

According to warranty, the farmers who have purchased DIS can replace components in case of the

following:

manufacturing defect3

quality degradation caused by sunlight

Notice: Components of drip irrigation system must be free of any mechanical or physical damage

(eg. a cut or break caused by animals, insects or improper use during the installation process does

not provide this guarantee) (Please see annex C)

2Khalyapov I., 2013: Business Plan of Agro Bazar for 2013, Osh, 2013

3Andakulov D., 2013, Warranty certificate for drip irrigation components, Osh, 2013

Indicators Outputs

Transparent pricing policy of

Wholesaler (WS) and Retailers (RT)

developed and adopted

Pricing policy of WS is transparent (~27-35% of WS

margin2) to project and partners

Pricing policy of RT is not regulated

Price list of WS and RT developed

Product catalogue of WS is updated with newly arrived

goods and updated 2013 prices and published

Warranty certificates for the quality of

DIS hardware jointly (WS and RT)

developed and adopted

Warranty certificate for the quality of DIS hardware was

developed


5.2. Effective targeted promotion of DIS and awareness rising of population.

Process:

Project intervention in drip irrigation was not regulated by any written concept or regulations in the

past years. Since drip irrigation was a component under SEP project the SEP Project Document was

the main reference point for drip. Though drip irrigation is a project under different working area

unlike SEP and follows different intervention approach. Thus in 2013 project intervention strategy in

form of a “Concept of Drip Irrigation Systems Supply Chain Development and Operation Facilitation

Strategy of HELVETAS and IDE for 2013” was developed and followed. The intervention concept is

available with project.

Together with the concept, the collaboration agreements (grant agreements) with WS and RT were

signed for promotion of DIS and partly for research and technical backstopping:

- AB grant agreement in amount of 1,087,404 som for market promotion and supply chain

facilitation

- ZOKI grant agreement in amount of 470,616 somfor technical coaching of partners and

research on drip irrigation

- AFLU grant agreement in amount of 216,000 som for market promotion and supply chain

facilitation

- RAS Jalalabad grant agreement in amount of 87,800 som for market promotion and supply

chain facilitation

Market research

Market research to assess market potential was one of the main challenges of project in 2013.

Market research was assigned to iDE Backstopper Markus Brauchli. The main tasks of the research

were:

a) Identify zones in Kyrgyzstan where the main production is orchards tree production and

assess/quantify the market potential

b) Identify zones in Kyrgyzstan where the main production is vegetable production and

vegetable production in the greenhouses for market and assess/quantify the market

potential

c) Identify the affordable price level for DIS for Kyrgyz farmers if to apply DIS for home

consumption;

d) Identify existing on local market other than promoted by project drip irrigation systems of

other production (where, who and how much)

e) Assess additional perspectives and the risks for drip irrigation in Kyrgyzstan

4 Drip sales data base 2013 5Andakulov D., 2013: Protocol of agro expo fair, Osh, 2013

Indicators Outputs

Хх new clients 85 new clients4

Хх potential clients from promotion

220 potential clients from Agro Expos and TV

advertisements5

Хх retailers 5 retailers


The research was finalized and presented to project partners by the backstopper in November,

2013. In figure 2, it is shown the aggregated vegetables production and aggregated orchard

production trends from 2008 – 2012. To calculate the trend, 2008 was taken as a base year with 100

% for both aggregated vegetable production and aggregated orchard production.

Figure 2. Aggregated vegetable production and aggregated orchard production

In figure 2, it shows with blue columns that in general in Kyrgyzstan the production of vegetables had

declined from 2009-2010, but starting from 2010 it is increasing gradually. Here in the graph

aggregated vegetables contain itself cabbage, carrot, melon, cucumber, onion, potato, garlic,

tomato, eggplant, radish, turnip, and sweet pepper. Actually in last 2-3 years the greenhouse

business is getting popular all over the country and of course the production of common greenhouse

crop cultures like tomato and cucumber are growing. The biggest market potential for drip irrigation

technology is the greenhouse and orchards. That`s why in terms of sales potential for the WS and

RT, the modest growth trend of aggregated vegetables is not a bottleneck but rather the growth

production of common greenhouse crop cultures like cucumbers and tomatoes are the potential

market for drip irrigation system. As an example please see figure 3, which shows the growth trend

of tomato and cucumber in Jalalabad and Osh oblasts.

The growth trend of orchard in general Kyrgyzstan is a good indicator for future of drip irrigation

technology. For orchards with sloped areas the drip irrigation technology will be non-substitutable

94

96

98

100

102

104

106

108

110

112

2008 2009 2010 2011 2012

Growth trend of vegetables and orchard 2008 - 2012 in percentage

Vegetables Orchard Линейная (Vegetables) Линейная (Orchard)


solution/technology for irrigation. In figure 2, the aggregated orchard production contains itself apple,

pear, apricot, cherry, plum and peach.

Figure 3. Production of tomatoes and cucumbers in Osh and Jalalabad oblasts (2008 year was taken as a base year with 100%)

As it shown in figure 3, the cucumber production in both oblasts is growing steadily. Together with

cucumber the tomato production is also growing with big pace.

These results were used during the planning mission of project phase II and will be also used for

marketing strategy development next year.

Advertisement and PR materials

Need based promotion and advertisement materials were developed and distributed to partners.

Please see below the table 2 with list of PR materials:

PR materials

Booklets of the project Booklets of Agro Bazar

100 112 111

117

131

100 105

94 99

122

100

128 137

149

196

100

126 118

111

197

2008 2009 2010 2011 2012

Production of tomato and cucumber in Osh and Jalalabad oblasts

Tomato Jalalabad Tomato Osh

Cucumber Jalalabad Cucumber Osh

Линейная (Cucumber Jalalabad) Линейная (Cucumber Osh)


Leaflet of Retailers DVD disks with advertisement and the movie

http://kyrgyzstan.helvetas.org/en/publications/

Product catalogue of Agro Bazar T-Shirts with caps to partners

Drip design manual Water wheel

http://kyrgyzstan.helvetas.org/en/publications/


Banners for partners Drip installation Manual for clients (farmers)

Table 2. Set of promotion materials

Consultancy mission from iDE

In 2012 the marketing strategy of DIS was missing though sales target was achieved. Marketing

efforts of project and partners were coordinated and targeted but not written down. In order to fill in

this gap the mission of iDE consultant was conducted in March.

Mission of consultant from iDE Vietnam had an objective:

- “to provide business support to the project and the project partners (wholesaler and retailers)

on drip irrigation component to outline the marketing strategy of effective promotion and

sales of DIS on local market according to the supply chain development approach.”

With the marketing plan (output) to be developed at the end of mission.

But during the mission goal had to change to:

- “support to the project with inputs and recommendations on market facilitation strategy and

approach for project for effective promotion and sales of DIS on local market.”

As seen above the marketing strategy was not possible to be delivered by consultant and therefore

the mission goal was adapted. Inputs of the mission have to be considered in the marketing strategy.

The marketing strategy development task remains with project.

All the main tasks according to the ToR of consultant were delivered and the following

recommendations were provided by Consultant:

Sales and promotion:

o PR materials: clear understanding of market segmentation and customer in order to

develop the catchy message/slogan to be delivered to the target audience (eg. More

crop per each drop)

o PR materials: to do the trial tests of PR materials (booklets, movies, advertisements)

with target audience (clients) before production in order to develop more efficient PR

material (with the necessary message to be delivered to the audience)


o Sales: Satisfaction analysis of the customers – the adopters/users of system, the

non-users of system and the ones who dropped the system out. In order to have the

voice of customer about the product, service and sales

o Sales: try out the test sales with the interested clients and demo-farmers with a

payment delay for some months

o Sales: Market sizing is missing to develop the marketing strategy

o Sales: to continue with demo-plots approach for awareness raising and market

creation since the product (DIS) is new in the market

o Capacities of partners: capacities of Retailers are well built up on technical side of

drip irrigation technology so far but not on marketing and sales side. To increase

capacities of sales agents/individuals of RT on sales skills

o Capacities of partners: to separate the functions of installers and the sales agents.

All recommendations given above from the consultant were considered in production of PR

materials, sales of DIS and capacity building of project partners.

Promotion through mass media, fairs etc.

Promotion of DIS through mass media was agreed by all partners as one of the main and efficient

channels of promotion. DIS’s advertisement (developed in 2012) was widely broadcasted on first

national TV which covered whole Kyrgyzstan based on media-plans. Besides TV, the advertisement

of drip irrigation was issued in newspapers of Association of Forest and Land Users in Kyrgyzstan

and Rural Advisory Service of Jalalabad.

In 2013 partners participated in 4 fairs, out of it 3 were in North and one in South. Participations at

agro expos in North influenced significantly on sales growth in North. Retailers in North of

Kyrgyzstan, especially ZOKI had a good opportunity to generate their sales.

9 demonstration plots have been settled by partners/retailers, out of which 7 are in South and 2 in

the North. Lesson learnt from demonstration plots of 2012 was “necessity of having certain criteria

for demo-plots”, since demo-plots are one of the main marketing tools of DIS in the rural areas. Thus

the following criteria were agreed to be followed by all RT:

- Convenient location (close to farmers’ fields, many farmers have access to see etc.)

- Dissemination effect (conditions of demo plot is similar to conditions of that location like soil,

water etc.)

- Appearance (nicely set DIS, well treated field)

- Motivation of demo farmer (demo farmer should have interest in organizing demo plot and

demo-days, giving out to interested farmers information on drip etc.)

- Records keeping (keeping records of water consumption and economic analysis)

Besides the given above criteria RT`s were committed to provide the following conditions under

collaboration agreements on demos:

- From every demo plot min.3 clients shall buy DIS

- On the basis of every demo plot minimum 1 field day shall be conducted

o With minimum 30 interested participants, out of it 10 potential clients, and out of 10

with minimum 3 clients

The results of demonstration plots were not that effective directly to the sales but rather it was good

tool for raising the awareness in rural areas. As it is shown in figure 4, in 2013 the 34% from the

budget for promotion has spent for demonstration plots. Having the special demonstration plots was

costly and the effect to sales was not convincing. Please see in paragraph Lessons learnt to see the

strategy change of demonstration plots. Though having demonstration plots was not bad, because at

each demo – plot the demo - farmers were keeping a record of the water consumption and time

spent for irrigation which served as a data input for the analysis of efficiency of drip irrigation

technology on the plot.


Figure 4. Budget allocation to promotional activities

34% 36%

12%18%

34%

Demonstration plotsAFLU – 5

RAS JA – 2

Mehr Shavkat - 2

12%

Participation to fairs,

expos etc.

4 expo participation

18%

TV advertisement

TV advertisement of drip

irrigation movie on

national TV channel

PR materials

Publications like, leaflets,

booklets, catalogue, manual,

DVD disks, banners etc.

36%


Sales in 2013

Sales in 2011 were 5700 USD6 and in 2012 were 12,700 USD

7. The target goal for 2013 was 50%

more from 2012 which is 19,000 USD but it again overreached the target which made 22,500 USD.

First 1’000’000 KGS sales marked 2013. Each year starting from 2011, the average sales growth is

about 60 – 70 %.

Figure 5.Sales growth trend in 2011 – 2013

Figure 6. Dynamics of sales in 2014

Figure 6 illustrates the dynamics of DIS sales on monthly pattern. As it is clear from the graph, peak

of sales is generated during the months of April and October, which makes 55% of the total sales.

Sales start slowly from March and reach to the top in April and declines in May. The reason is that

farmers start farming activities during these mentioned months’. March supposed to be also peak

sales month, but in 2013 year the winter lasted longer. In the second half of the year, peak sales

were in October because vegetables production in the greenhouses starts in the mentioned months.

As it is shown in figure 4, for the promotional activities January, February, June, July, August and

6Abdyllaeva J., 2011: SEP project annual progress report 2011, Helvetas Kyrgyzstan, Bishkek 2012

7Abdyllaeva J., 2012: SEP project annual progress report 2012, Helvetas Kyrgyzstan, Bishkek 2013

JanuaryFebruar

yMarch April May June July August

September

OctoberNovemb

erDecemb

er

Ряд1 0 35000 73972 331627 104505 95682 55077 11645 84395 260970 29865 2770

0

50000

100000

150000

200000

250000

300000

350000

KG

S

Dynamics of sales in 2013

Peak season

of salesPeak season

of sales

Period for

promotion

Period for

promotion


September is the best time. In 2013, most of the promotional activities like fairs, TV advertisements,

field days were done during above mentioned promotion period.8

9

Build-up of clients, end of 2013 –Kyrgyzstan

Since 2010 overall more than 28 hectares of arable land have been put under drip irrigation in

Kyrgyzstan.

10

Monthly cumulative value of sales at wholesale prices (USD) – Kyrgyzstan

During phase I 2010-2013 in Kyrgyzstan the program has reached some 195 farmer families with

MITs by the end of 2013, mainly drip irrigation. There were also minor sales in low-gravity sprinklers

and water storage bags that are not represented here. Drip irrigation in Kyrgyzstan is being used on

fruit orchards, for open-vegetable production and inside small-and medium-sized greenhouses.

Sales by RT

Out of 5 retailers including AB (which also sells to farmers directly with a RT margin) the best-selling

RT of year was ZOKI (please see figure 7) followed by AB. ZOKI sales were done both in the South

and the North. ZOKIs` sale is almost half of the total sales which were generated during the year.

In the second place is Agro Bazar (AB). The AB has comparative advantage comparing to RT`s in

the sense of:

Warehouse (all needed components are available)

8 Brauchli M, 2013: ProDoc Scaling Up Water Central Asia Phase II Draft



41

0

5

10

15

20

25

30

35

40

45

J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N

2009 2010 2011 2012 2013

TOTA

L SA

LES

('0

00

USD

)


In TV advertisements which covers whole country (contact telephone number of AB is given)

AB is a wholesaler and it has a bargaining power of supplier

AB has preemption on sales

AB has a superior information on potential clients (TV advertisement)

In addition to the sales, all the retailers demonstrate the technology on demonstration plots, advise

farmers on installation and application, and provide after-sales support.

Figure 7. Sales by partners

Figure 8. Sales growth in 2012 – 2013 in each oblast

0 100000 200000 300000 400000 500000 600000

Agro line

Mehr Shavkat

AFLU

RAS JA

Direct sales of AB to farmers

ZOKI

KGS

Agro line Mehr Shavkat AFLU RAS JADirect sales of AB

to farmersZOKI

KGS 11685 46018 69017 138770 255527 569715

Sales of partners in 2013

Jalalabad Osh Batken Issyk-Kul Naryn Talas Chui

2013 138,8 308,2 140,1 248,2 23,5 11,8 223,4

2012 98,7 214,6 76,2 6 9 3,2 101,8

0

50

100

150

200

250

300

350

KG

S in

th

ou

san

ds

Sales growth comparison by oblasts in 2012-2013


In 2012 yearly report was written to focus on North of KR11

. Comparing to 2012, promotional

activities like TV advertisement and agro expo fairs were conducted in North. In figure8, it is shown

that in Issyk-Kul and Chui oblasts was a big jump of sales. These jumps are due to the fairs and TV

advertisements. Out of total sales 46% of it was generated in North.

Figure 9. Proportion of sales to North and South in 2012 - 2013

11

https://assets.helvetas.ch/downloads/130212_hsi_kr___sep___report_2012_en_final.pdf

https://assets.helvetas.ch/downloads/130212_hsi_kr___sep___report_2012_en_final.pdf


5.3. Building and strengthening capacity of chain actors by use of practical methods in drip irrigation technologies.

Process:

TOT trainings

The technology of drip irrigation was absolutely new when it was introduced by project in 2010-2011.

The necessity of capacity building-up of project partners on designing and installation of drip

irrigation system was given. Project technical support is being provided since 2011 and the

capacities of partners were well developed over last three years. 179 installers of DIS were trained

over 2011-2013. In figure 10, it is shown the number of people trained in different oblast from 2011 –

2013. iDE support for technical capacity building of partners is highly valued by project and partners.

Mission of Sudarshan in 2011 and mission of Ryan Weber in 2012 helped a lot partners to learn in

details the technology of micro-irrigation.

Though the capacities of partners were sufficiently developed during last year of project intervention

the technical support was still requested by partners in 2013. Technical support was provided to

partners by ZOKI and no external backstopping was needed.

ToTtraining were conducted by ZOKI trainers on the basis of an updated module. Adapted version of

module was shortened to one day training. The module (in Russian) is available at project. Based on

request of RT, two ToT training were conducted in 2013: one ToT in South, which was conducted on

July 6th in Alai where the drip irrigation system was installed to potato, and another one was done in

North on August 12th in Pokrovka, Issyk – Kul. Altogether 33 people were trained in TOT trainings

and out of them 21 were new participants.

Indicators Outputs

Design manual Design manual is published and distributed to all RT

Adapted module Adapted module is available

Research report Research is done and report is with project

Demonstration plot analyses report

Analysis is done and report is available

XX installers RT are able to develop

design and install DIS

33 new installers in 2013 are trained

Presentations in all pilot areas for

local authorities had been conducted

Presentation of DIS to LSG bodies will be done during

field days of partners in the next semester

Drip users` manual is updated

“Water wheel” is done


Figure 10.Number of people participated ToT trainings over the past three years 2011 - 2013

Research

Research of efficiency of use the drip irrigation at field level was initiated by project and mandated to

ZOKI in order to empirically get the convincing data of efficiency of applying the low-cost affordable

drip irrigation technology in the local context in order to further use this data for promotion and PR of

DIS on local market. Additionally the irrigation regime (when and how much to irrigate) with use of

drip system is not known. This research was planned to practically develop the irrigation regime of

mainly the vegetables and fruit trees with drip system. The research was conducted by ZOKI (project

mandate) on the basis of demonstration plots:

a) Tomatoes in greenhouses in Kara - Suu, Telman village with 0.01 ha (100 m2) land size

b) Cherry trees in Nookat with of 0.7 ha land size.

The research results were taken and analyzed. The figure 11 shows the research results of cherry

trees in Nookat with of 0.7 ha land size. In this orchard two plots were taken. Both plots were

irrigated from pumped water but one plot was irrigated with drip technology and the other was with

furrow. The numbers were converted into percentages. The traditional method results were taken as

a 100% to see how much water can be saves in percentage under each column with drip irrigation.

The research results were convincing. In figure 11 has shown in columns the difference between

irrigation through traditional method, furrow irrigation, and drip irrigation technology. In terms of

saving water farmer could save through drip irrigation technology by 93% within one season

comparing to traditional irrigation. In orchards where water is scarce, irrigation by drip irrigation

technology is crucial. Farmers can irrigate with less water available the bigger part of their land. In

the results of research, drip system did not had advantage only on saving the water amount but also

it had advantages on irrigation duration, working hours for irrigation and electricity fee. Here the

irrigation duration means how fast water can get to the plants. Obviously through drip irrigation water

reaches to the plants faster and without any water loss, no infiltration on the way. The research

didn`t took into account the infiltration and water loss in a specific length and at specific temperature,

0

10

20

30

40

50

60

Bishkek Osh Jalalabad Batken Issyk kul Naryn Alai

Number of people participated and learned about the drip installation

number of people


but definitely in these sense the drip irrigation technology had big advantage. Working hours for

irrigation in traditional method is heavy, dirty and time consuming job. Irrigation through furrows is

difficult especially if land is not smooth. Water spread on each furrow is not even and hard to

regulate. That`s why farmers spend big part of their time for regulating the water flow. All uneven

watering of plants may cause bad effect to the harvest of plants. Since both plots were irrigated from

pumped water, for drip irrigation system farmer was using water pump only to fill up the reservoir but

in traditional method water pump was working until water reaches to all plants. Comparing to

traditional method farmer`s electricity fee was less by 92% on irrigation through drip system.

The results of research will be documented in a form of issue technical sheet and disseminated

among interested partners. The research results will used in PR materials as well.

The research report of ZOKI was submitted and is available in Russian at project.

Figure 11. Comparison of drip irrigation technology and traditional irrigation method

Drip design manual

Drip design manual is a guide for installers of DIS about how to plan the design and do installation of

drip irrigation systems practically for various crops and plots. Manual has been long time requested

by partners and in this year ZOKI (project mandated) finished the manual with project comments and

with feedback from Ryan Weber. Currently the drip design manual is published and given to project

partners. It describes in details and fully the process of planning the design and technical installation

of drip systems. The manual will be used at TOT trainings as a handout for participants and will

support after trainings in the field work. Please see drip design manual on Helvetas website pamoja.

7

66

33

8

100 100 100 100

Volume of water consumption(m3)

Irrigation duration (hrs) Working hours for irrigation(hrs)

Electricity fee (KGS)

Comparison of drip irrigation technology and traditional irrigation during one season

DRIP Traditional


Figure 12. Drip design manual

User’s guide

The users’ manual is a simplified guide developed for farmers /clients. It is given out with every sold

DIS if farmer/client wants to install the system himself/herself without consultancy support from RT.

In 2013 the manual/guide was updated, and developed for sub-surface and surface DIS and printed.

Figure 13. Surface drip irrigation system installation manual/ User`s guide

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5.4. Close and mutually beneficial cooperation between WS, RT and SEP built up along the DIS supply chain.

Process:

Coordination meetings

Necessity for coordination of activities was spelled out in 2012 by partners. In 2013 a tool of

coordination meetings together with peer monitoring function was suggested by project and well

picked up by partners.

Coordination meetings were organized among drip partners with a purpose of regular information

exchange, coordination of activities, peer monitoring of demo-plots etc. on a rotation basis.

The regular coordination meetings were conducted:

# Who When Where

1 Agro Bazar February, 28 Osh, AB office

2 MehrShavkat April, 28 Aravan

3 AgroLine and ZOKI June, 28 Osh

4 AFLU August, 9 Bishkek

5 RAS Jalalabad October 31 Jalalabad

The regular points of discussion on agenda of coordination meetings were:

- Sales update of last month

- Plan of hardware supply for next month

- Follow up on previous meeting action plan

- Various/information exchange

Protocols of all coordination meetings are available with project.

Indicators Outputs

Data base Data base is available for 2013

Coordination meetings + joint

monitoring

5coordination meetings and joint monitoring were

done

Profitability of supply chain is

analyzed

Task is assigned to Markus Brauchli, results are

ready

Warehouse in Bishkek for RT North New wholesaler Cooperative Caplys Plus is

selected with warehouse in Bishkek

Delivery of new consignment of DIS

hardware

All ordered consignments arrived

RT regularly supplied with required

qualitative DIS materials

Starting from next year no shipments delays would

be. Agro Bazar will supply South and Caplya Plus

will supply North

WS and RT collaboration

mechanisms improved

Buying and shipment procedures were improved

between WS and RT


Improved collaboration of supply chain actors

Collaboration of partners along the drip supply chain was well going on according to the following

process scheme (figure 14).Supply and sales of DIS between the supply chain actor (WS and RT) is

regulated by sales agreements (with delayed payment systems).

Figure 14. Supply Chain of drip irrigation

HR resources lack was one of the main problems of AB in 2012. New person was hired to AB for

drip irrigation starting from February. Costs of this position are so far paid from project funds, In

future based on business plan projections the position has to be covered by AB (from sales of DIS).

Shipment was simplified, RT`s don`t need to come to warehouse. They can just send filled

application and WS can deliver the ordered goods.

Data base of sales

Lack of regular sales data recording was one of the shortcomings in 2012. Thus an idea of

developing the sales data base on a professional software basis was initially in the beginning of the

year. The idea of data base was to have always updated information about sales cash available on

bank account, debts to be delivered from RT, goods available in the warehouse etc. Commercial

offers from software developers were far too expensive and had too sophisticated structures

because of being developed for big businesses. Since budget wise the resources were limited and a

more simplified data base was needed it was decided to continue to work on excel format so far

unless sales turnover will get too high. The data base structure in excel format was updated and

handed over to AB. It was well communicated to partners and regularly updated. AB was keeping

regular update of data base and informing all RT about sales progress and warehouse during the

coordination meeting.

Cost benefit analysis

Cost benefit analysis of drip supply chain as task of Markus Brauchli, iDE Backstopper was finished

and presented to project partners during planning mission on November 29th, 2013. Idea of the cost

benefit analysis was to assess profitability of drip business on farm level, RT level and WS level.

Farm level analysis was done on the basis of assessment of three plots (300m2 vegetables in

greenhouse, 500m2 vegetables on open ground and 1ha of apricots).RT level analysis on the basis

of existing RT and WS level analysis on the basis of AB.

Manufacturers

(India and China)Retailer 1

Retailer 2

Retailer 3Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Farmer

Wholesaler

Agro Bazaar

Project support (grant):

- Market creation and promotion

- Technical support (through ZOKI)

Project support (grant):

- Purchase and importation of drip hardware;

- Market creation and promotion;

- Facilitation of supply chain (regular meetings,

workshops etc);

- Technical support (through ZOKI)

- Contribution to cover HR costs for implementation

of project


The results of the analysis show that, on farm level:

- 300m2 vegetables in the greenhouse make total net benefit in 3 years production at

-1’463’371 Som, i.e. loss of 1,463,371 Som

- 500m2 vegetables on open ground make total net benefit in 3 year production at -145’950

Som, i.e. 145’950 Som loss.

- 1ha apricot plot’s total net benefit in 3 year production is -113’386 Som, i.e. loss of 113’386

Som.12

The overall feedback of partners and project to the analysis results above is as follows:

- 300m2 vegetables in the greenhouse

=> the analysis was done considering costs of greenhouse construction (~450’000 som)

which influenced the final profitability index (-1’463’371 Som) and the total net benefit/loss is

calculated for the green-house produciton. Whereas the idea was to analyse the profitability

of drip irrigation technology in the greenhouse, i.e. the control plot should have been

greenhouse with traditional irrigation and experimental plot greenhouse with drip irrigation.

- 500m2 vegetables on open ground

=> costs are calculated at higher rate than it is in fact and additionally the interest rates are

calculated which made the loss of 113’386 Som.

- 1ha apricot

- Apricot or any other orchard will not produce fruit in 3 years. So in order to calculate the

profit/loss of drip irrigation system use on orchards the period of calculation should be min.5

years.

The results of the analysis show that, on retail level:

- Sales of DIS on retail level is at -91,910 Som (average of 5 organisations over five years). It

is evident that sales of DIS is not yet at the level of real business sales with high turnover

sales to cover fully the office costs, salaries of staff etc, Thus so far the sales of DIS is an

interesting side business for NGO but not for real business organisations dealing with

distribution of agri-inputs. But the retails sales of DIS can be an interesting small scale

business for private individual sales agents with limited costs.

The results of the analysis show that, on wholesale level:

As seen in the figure 15 below, bigger share of total costs is covered by project (market development

cost) which are supposed to be covered by revenues of sales in the future.

12

M.Brauchli – Profitability analysis at farm level, 2013


Figure 15. Profitability analysis of Agro Bazar, 2011- 2013

-600 000,00

-400 000,00

-200 000,00

-

200 000,00

400 000,00

600 000,00

800 000,00

1 000 000,00

1 200 000,00

2010/2011 2012 2013

Profitability analysis Agro Bazar

Annual Sales Turnover

Total expenses

Annual Project expenses

Annual Gross Margin

Annual net profit /loss from sales(market terms)

Annual net profit /loss from sales(under project)


6. Gender and Social Equity

The drip irrigation project`s pro-poor focus is shown in figure 16, with the five vulnerability indicators

of Disadvantages Groups (DAGs).

- Women: The percentage of women among farmers buying DIS is 14%. The reason of rather

low percentage of female buyers is seen in the local culture of Kyrgyz and Uzbek people.

According to local cultural norms especially in rural areas buying is done by husbands,

though decision making process of purchase could be done jointly by wife and husband.

According to clients` data base 86 % of total farmers/clients were male, though there are

many cases when female are the users of drip irrigation system in the field.

- Age below 25: 18% of DIS buyers are people under age 25. This is mainly explained by

high rate of migration of youth to border countries for seasonal earning.

- Living > 40 km from rayon center: not applicable. In Kyrgyzstan there are all together

about 40 rayons and most of them are less than 80 km of length distance. Usually 40 km far

from rayon center is already different rayon. Under this indicator only remote rayons like Alai

and some rayons of Naryn and Talas oblasts fit, where usually people are shepherds. The

irrigation and farming is not popular in these above mentioned places (please see Annex D

for rayons of Kyrgyzstan).

- Disaster prone area: in average it is about 7% of total sales is done by farmers living in

disaster prone areas. Though with the assumption that this percentage could be higher

because in the project in 2013 there was no specific study of rayons considered as disaster

prone by Ministry of Emergency. This DAG group will be more concretely followed up by

project in 2014. .

- Having > 5 dependents: Among the farmers/buyers of DIS 15 % are people who have 5 or

more dependents.

Figure16. Characteristics of vulnerability

18%

14%

15%7%

0%0%

20%

40%

60%

80%

100%Age below 25

Women

Having 5 dependentsLiving in disaster prone area

Living > 40 km from rayon center

Characteristics of vulnarability

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7. Lessons learnt and Conclusions

7.1. Analysis of Sub-Objectives under the Expected Result 4

ER 4: Market testing on profitability of drip irrigation systems sale at all levels (of participants) of

the value chain and efficiency of using drip irrigation technology at the farm level are assessed.

Sub-Objective 4.1.: Farmers are provided with qualitative DIS with guarantee and at affordable

prices

Price: wholesale prices of DIS components were quite competitive on market in comparison to other

suppliers existing on the market (Turkish, Uzbek)

To keep monitoring prices of other suppliers in the market to stay competitive on terms of

price and quality.

Quality: in 2013 there was no problem in terms of quality of components.

=> Good quality goods to be kept in future.

Product: variety of products in 2013 was a bit limited. Some components were missing in the

warehouse. Because the last shipment of Chinese hardware of 2012 was detained on the border by

customs service’s due to some customs clearance problems of freight forwarder. Missing parts of

DIS in the warehouse were completed only when the container with detained hardware was released

and when next container from China arrived in October-November.

To have regular monitoring of the warehouse using the data base in order to avoid having

such gaps of goods in the warehouse in the future. Competition on the wholesale level

should be in place ideally. This way RT will have choices of WS and will not depend on one

WS in their sales like it happened in 2013.

Products diversification is to be considered for 2014. For example to identify target group

clients and their specific needs of product (sub-surface laterals, Turkish, Uzbek produced

material etc).

Sub-Objective 4.2.: Effective targeted promotion of DIS and awareness raising of farmers about DIS is done.

Sales: the sales growth curve kept going on in 2013 as well. Sales progress hit the target by far with

reaching 22,500 USD in 2013, which is 77% higher than in 2012. Especially it is remarkable to see

great market potential in the North, which is promising with vast areas under orchards and need of

water.

To continue with market penetration strategy in both South and North of the KR.

Need based project support to both WS – AB and the Caplya Plus is to be provided in order

to help to further develop market and business development support (business plans

including financial plan and marketing plan).

Promotion: promotion of DIS was done through mainly activities like demos, agro-fairs, TV etc. The

cost allocation was like a) demo-plots – 34%, b) fairs/expos – 12%, c) TV advertisement – 18% and

PR material – 36%.

Promotion campaign should follow the dynamic of sales (see the figure 6), i.e. promotion

should be done in a) January – Mid March and b) June – Mid September


Promotion channel – demo plots

Demo-plots as seen above are quite expensive tool of promotion and consume a lot of

efforts and workforce, which is not justified. Project will quit with organizing demo-plots in the

villages, but maybe the demonstrations of DIS on public place will be done if the costs are in

line with the budget.

Promotion channel – PR materials;

PR materials (product leaflets, banners, product catalogue, training and promo movies on

discs, user guide etc.) can’t be cancelled. Project will continue supporting production of

updated PR materials.

PR channel – TV advertisement

Broadcasting advertisement on TV is one of the most expensive channels of promotion but is

at the same time the channel covering the highest scale of potential clients. So, based on

budget available project will consider using this in promotion next year.

Promotion channel – participation at various agro-events like fairs, festivals, expos etc.:

Participation at various agro-events like fairs, festivals, expos etc. is one of the efficient tools

in terms of high scale covering of potential clients and comparatively low cost of

participation. Project for next year will continue following up the most popular and highly

attended agro-events and participation.

Sub-Objective 4.3.: Building and strengthening capacity of supply chain actors by use of practical methods in drip irrigation technologies.

Capacities of partners: technical capacities of partners on drip irrigation are sufficiently built up.

Currently not only ZOKI can provide technical coaching on drip designing and installation but staff of

existing retailers can do as well. Capacities of partners are weak in marketing and sales strategies.

Capacitation of RT /sales agents on marketing and sales skills is to be continued in 2014

need based.

Sub-Objective 4.4.: Close and mutually beneficial cooperation between the supply chain actors (wholesaler, retailers) and SEP built up.

Wholesales: in 2013 AB failed to provide RT with necessary material when needed. RT had

complaints about missing parts of DIS on the warehouse and had to install DIS with existing

components (different size joiners, elbows etc.)

Due to risk of dependency on one wholesaler and need of competition on wholesale level

the second WS Caplya Plus Cooperative with focus on North mainly but not only was

supported by project. Both WS will need support from project in future. Namely both WS will

need business development support need based.

Retailers: number of RT in 2013 was 5. Though number of RT was the same as in 2012 it didn’t

hamper sales progress. The RT supported so far by project were SEP project partners, i.e. the local

extension services (NGO). The actual sales show that sales on retail level are generated by

individuals / sales agents. For example in ZOKI all the sales were done by Payaz Jooshev, the

Irrigation Specialist or in RAS Jalalabad sales are done by Zairbek Torobekov. This is why Payaz

Jooshev together with his colleague Kushbak Abdraimov decided to establish own business of DIS’s

sales in form of cooperative Caplya Plus.

Project support to boost retail sales should in the future target not at NGOs anymore but at

real businesses since sales scales is sufficiently grown. Interested individual persons – sales

agents, who could be extension workers or leader farmers etc. are to be identified by WS

and supported for future.


Project support for supply chain development:

Supply chain was quite significantly developed during the last three year with project support.

Business idea of marketing the low-cost affordable drip irrigation systems proved to be feasible and

profitable in Kyrgyzstan. Making business in agriculture, like fruit trees/orchard or vegetable in the

greenhouses is seen as perspective business opportunity and drip irrigation is seen as a perfect

solution. Local business entities are being more and more interested in the business idea of DIS

supply seeing its potential growing.

Project support is to be continued in the future for local market development. Project

intervention should be based on “no-market distortion” a principle which is important to make

it a successful project. Any subsidies from project should be avoided. Project should support

awareness raising activities for market creation based on business plans of partners.


8. Outlook

Project activities in 2013 were accomplished according to plan of operations and with no deviations

from plan. Budget of Drip Component 2013 was used almost to 100%.

Perspectives of drip project for Phase II were dependent on decision of IDE since HELVETAS co-

financing of this project with own funds will stop unless any donor mandates will be available. With a

positive response from IDE, planning mission was held in November. Led by Markus Brauchli the

mission came up with Project Document for Phase II 2014-2016 which is under

discussion/commenting currently and still to be approved. For the phase II project plan is to slowly

withdraw from Kyrgyzstan and expansion and penetration more to Tajikistan. Project management in

next phase in both Kyrgyzstan and Tajikistan will be implemented by HSI Kyrgyzstan due to

limitation of available funding. Project manager will be constantly supported by iDE Backstopper

Markus Brauchli.

Project intervention will follow market development approaches and principles of HELVETAS and

iDE and will built up on achievements of phase I. In brief the Phase II project profile is as follows, as

per Project Document:

Name of project Scaling Up Productive Water – Phase II / Kyrgyzstan/Tajikistan: Micro Irrigation Technologies (MIT) Market Creation Project, Phase II

Project no KGZ_12510730_Micro Irrigation Technologies (MIT) Market Creation Project_ 14-16

Countries Kyrgyzstan/Tajikistan

Working Area Productive Water Working Field Market Based Approaches (M4P)

Start date 1.1.2014 End date 31.12.2016

Number of phases

Two

Short description

Dissemination of productive micro irrigation technologies (MITs) for smallholder farmers with a market-based approach. The key element is creating financially viable supply chains in Kyrgyzstan and Tajikistan that allow MIT sales to smallholders to grow after the end of SDC /GWI support. Another dimension is making the technologies and the approaches available for replication globally through Helvetas Swiss Intercooperation-iDE collaboration.

Development goal

Scaling Up Productive Water and the MIT market creation project in Kyrgyzstan and Tajikistan contributes to the reduction of poverty of the rural population depending on water resources by increasing their income and supports them in using irrigation water more productive.

Specific objectives

1. A financially self-sustaining supply chain is established (SUPPLY CHAIN)

2. Technical capacities of stakeholders in the value chain are built (TECHNICAL

CAPACITIES)

3. MITs are effectively and efficiently promoted (PROMOTION)

4. Means to finance and buy MITs for farmers are in place (ACCESS TO

FINANCE)

Outputs (quantified)13

Kyrgyzstan:

The number of new clients per year increases from 64 in 2013 to over 150 in

2016 (conservative estimate)

The annual sales turnover at wholesale prices increases from KGS 1’090’000


(CHF 19’800) in 2013 to over KGS 1’725’000 (CHF 31’200) in 2016

(conservative estimate)

The area size of arable land yearly newly irrigated by micro-irrigation

technologies increases from 12 hectares in 2013 to over 22 hectares in 2016


Tajikistan:

The number of new clients per year increases from 3 in 2013 to over 50 in

2016 (conservative estimate)

The annual sales turnover at wholesale prices increases from TJS 10’500

(CHF 2’000) in 2013 to over TJS 79’000 (CHF 14’800) in 2016 (conservative

estimate)

The area size of arable land yearly newly irrigated by micro-irrigation

technologies increases from 3 hectares in 2013 to over 15 hectares in 2016


Right-holders Women and men farmers depending on water resources for their agricultural production and livelihoods

Project partners Wholesalers, Retailers, Extension Service Providers, NGOs

Donor iDE through funds from SDC Global Water Initiatives

Resources (phase - budget)

CHF 330’000

Action plans of 2014 will be developed in January 2014 on the basis of Project Document together

with project partners.

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