**INITIAL ENVIRONMENTAL EXAMINATION**

***AMENDMENT \# 1***

**[PROGRAM/ACTIVITY DATA]{.underline}:**

**Program/Activity Number:** 663- 016

**Country/Region**: Ethiopia

**Program/Activity Title:** Strategic Objective 16: Market-led Economic
Growth and Resiliency

Increased

**Funding Begin:** FY 2004 **Funding End:** FY 2008 **LOP Amount:** \$
and \$ Financial Info Removed

> Food Resources (Title II)

**Sub-Activity Amount**: N.A.

**IEE Prepared By:** David Kinyua, Assistant Regional Environmental
Officer

**Current Date**: May 20, 2005. Revised August 11, 2005

**Other Relevant Environmental Compliance Documentation:** This IEE
references the following USAID environmental compliance documentation
that is already in effect for ongoing activities under USAID/Ethiopia SO
16:

-   USAID/Ethiopia SO 16 IEE: 34 Ethiopia3_SO16_EG (8/18/04)

-   *USAID/Ethiopia Crop Production and Pesticide Evaluation Report and
    Safer Use Action Plan*, File no.
    \_33Ethiopia2_PERSUAP_SO7_SO11.doc\_(8/4/03) ;

-   *IEE for SpO 12, the Southern Tier Initiative*,
    31Ethiopia11_SPO_12_SC_Animal_Health (7/2/01)

-   *USAID/Ethiopia and CRS Guidelines for the Development of
    Small-scale Rural Water Supply and Sanitation Projects in Ethiopia
    (A Policy and Planning Framework for Activities funded by USAID
    under the Title II Program ,(*July 31, 2003)

-   *USAID/Ethiopia Programmatic Environmental Assessment (PEA) of
    Small-scale Irrigation in Ethiopia being Carried Out by USAID-funded
    Title II Cooperating Sponsors* (September 1999)

**IEE Amendment** (Y/N): Yes\_ If \"yes\", Filename & date of original
IEE: *34Ethiopia16*\_EG (8/18/04)

**[ENVIRONMENTAL ACTION (S) RECOMMENDED:]{.underline}** (Place X where
applicable)

Categorical Exclusion: [X]{.underline} Negative Determination:
\_\_[X]{.underline}

Positive Determination: Deferral[:]{.underline}
\_\_X\_[\_\_]{.underline}

**[ADDITIONAL ELEMENTS:]{.underline}** (Place X where applicable)

CONDITIONS: [X]{.underline} PVO/NGO: [X]{.underline}

## SUMMARY OF FINDINGS {#summary-of-findings .unnumbered}

This is an amendment to USAID/Ethiopia's SO16 IEE, to accommodate the
addition of four programs, part of the USAID/Ethiopia 2004-2008
Integrated Strategic Plan (ISP). Some of the SO 16 activities are being
modified to include the following: 1) Ethiopia Dairy Development
(**EDD**) Project; 2) Famine Prevention Fund Pastoral Livelihoods
Initiative (**FPF-PLI**); 3) Ethiopia Sheep and Goat Productivity
Improvement Program **(ESGPIP)**; and 4) Ethiopia Sanitary and
Phytosanitary Standards and Livestock and Meat Marketing **(SPS-LMM)**
Program. At this stage, the full range of activities is not well
defined, but the RFA/Ps for the EDD, the ESGPIP and the SPS-LMM were the
source of the analysis in this first amendment of the SO 16 IEE. A
second amendment is being processed to address the Environmental
Management Plans of the USAID-funded PVOs under the Ethiopia Productive
Safety Net Program

The purpose of this IEE is to provide the necessary environmental
documentation, pursuant to 22 CFR 216 (Regulation 216) for the above
four new program components. This document will ensure environmental
compliance, and also permit the implementation of the program activities
in accordance with USAID Environmental Policies and Procedures.

**1. A** **Categorical Exclusion** is recommended, pursuant to 22 CFR
216.2(c)(2)(i),(ii)(iii)and (v) for activities involving technical
assistance, analysis, advocacy, capacity building, resource provision
and training for capacity building, training, studies meetings and
policy changes under the **EDD Project**; trade promotion, initiatives
including reducing or eliminating export taxes and fees and easing
exchange controls, and policy changes for in country sanitary and
phytosanitary support to develop livestock and meat regulatory
procedures, emergency off-take, **de-stocking**, baseline surveys and
livestock early warning system under the **FPF-PLI** project; and
strengthening the capacities for development agents, providing satellite
access to improve internet access, promoting sheep and goat enterprise
development including fattening operations, links to financing,
strengthening of farmer and pastoralist organizations, improving the
regulatory framework, changing policies, advocacy, proposed under **the
ESGPIP;** and the SPS-LMM Program.

**2.A. A Negative Determination with Conditions** is recommended
pursuant to 22 CFR 216.3(a)(2)(iii) for physical interventions which
includes: cattle breeding program via artificial insemination,
distribution of bulls and/or embryo transplant; developing market and
trekking route infrastructure (including holding yards, watering points,
clutches, overnight-stay holding grounds, auction and marketing yards,
etc); restocking with improved breeds of small ruminants and protection
of breeding stock, e.g. supply of water, fodder, etc; and enhancing
productivity and economic returns of small ruminant meat production by
crossbreeding with superior imported sires, and preserving and selecting
indigenous genotypes.

Important concerns arise with respect to some of the interventions
related to "cattle breeding; restocking with improved breeds of small
ruminants; and building capacities in artificial insemination, multiple
ovulation and embryo transfer technologies." USAID's interventions in
these areas will be in line with GoE vetted technologies and, hence,
will have the full blessing of the Ethiopian government (Ministry of
Agriculture and Rural Development \[MoARD\]) and the national and
regional research institutions. Choice of breeds suitable to the country
and the different localities, and appropriate management regimes, will
be guided by what has already been established by the research and
development sectors. Such issues will be addressed as part and parcel of
the deliberative implementation process, and will be consistent with the
Africa Bureau *Environmental Guidelines for Small-Scale Activities in
Africa (EGSSAA)
(*<http://www.encapafrica.org/SmallScaleGuidelines.htm>), specifically
the chapter on Livestock.

***NB: Recommended mitigation measures are located in Section 4 of this
document.***

This amendment cross references all the other conditions contained in
the SO16 IEE: 34Ethiopa3_SO16_EG, which shall remain binding over the
life of this strategy[^1].

**[2.B. Other Conditions]{.underline}:**

Among the conditions recommended in this IEE include the implementation
of an environmental review process prior to undertaking certain
activities that may have adverse environmental impacts. These activities
are designated with a Negative Determination with Conditions, and
prescribe use of USAID Africa Bureau Environmental Review Report (ERR).
Proposed interventions for which the ERR is recommended are:

-   Development of the market trekking routes and the related
    infrastructure, livestock water source development.

-   Other activities involving **sub-granting** or downstream decisions
    on infrastructure development or rehabilitation, and the like.

The rationale for using the screening process (ERR) is to determine the
relative scale and potential negative environmental impacts from the
specifically planned activities. Depending on the scale, these could
range from significant to negligible. The form can be found attached to
the SO 16 IEE and at the Special Forms page of
[www.encapafrica.org](http://www.encapafrica.org/).

Other conditions, which are described in Table 1, include use of best
practices guidelines as described in the USAID Africa Bureau document,
*Environmental Guidelines for Small-Scale Activities in Africa*. This
document may be located at:
[www.encapafrica.org](http://www.encapafrica.org/).

New activities introduced into the project which are substantively
different from those presented in this IEE will require submission of an
amended IEE by the Ethiopia BEAT team leader to the AFR BEO. No
activities will be conducted prior to receiving approval of the amended
IEE.

**2.C. The deferral** for the activity "Expand rural marketing centers
to help stimulate and grow the market," under IR 16.2, recommended in
the July 2004 IEE for SO 16, is hereby resolved, by the above negative
determination with conditions, based on the analysis in the present IEE
amendment.

**3. Existing USAID/Ethiopia Environmental Compliance Documents:**
Several resources for advising on environmentally-sound practices exist
for ongoing and future SO 16 activities. These are reiterated here to
emphasize the importance for implementing partners to make use of these
resources. The recommended resources are as follows:

-   Water and Sanitation: All activities within this category shall make
    use of the USAID/Ethiopia and CRS *Guidelines for the Development of
    Small Scale Rural Water Supply and Sanitation Projects in Ethiopia*,
    July 31, 2003

-   Agricultural Chemicals: All implementing partners who will be
    assisting with the supply and distribution of pesticides shall
    reference the crop production PERSUAP (see reference under
    "Pesticides" below);

-   Irrigation: All activities involving irrigation planning, design,
    funding and implementation are required to reference the
    recommendations as contained in the *USAID/Ethiopia Programmatic
    Environmental Assessment (PEA) of Small-scale Irrigation in Ethiopia
    being Carried Out by USAID-funded Title II Cooperating Sponsors*
    (September 1999)

-   Provision of insecticide-treated bednets: Some distribution of
    long-lasting insecticide-treated bednets is contemplated under the
    Productive Safety Net Program and Title II activities. These
    interventions are covered by the ***USAID/Ethiopia Pesticide
    Evaluation Report and Safer Use Action Plan for Insecticide-Treated
    Materials in Ethiopia,*** (34Ethiopia2_LLITN_PERSUAP_SO14 and 16),
    and are also addressed in the SO 14 IEE.

-   All relevant and applicable GFDRE environmental policy and
    regulations shall be adhered to by implementing partners. This
    includes the following: the Environmental Policy of Ethiopia (EPE),
    the Water Resources Policy (1992), and the Environmental Impact
    Assessment Proclamation no. 299 (2002).

**4. A Deferral of a threshold determination, for possible Livestock
Disease Control Using Pesticides,** per 22 CFR 216.3(a)(7)(iii), is
recommended pending clearer identification of possible ecto-parasite
control activities to be undertaken. Some planned activities may involve
use of vaccinations and other means to control livestock disease and
ecto-parasites in livestock. Such activities may be included under IR
16.2 ---"Provide assistance to improve farmers' and pastoralists' access
to input and product markets". If pesticide use proves to be required
under programs supported by USAID/Ethiopia for control of ecto-parasites
in livestock, a new livestock Pesticide Evaluation Report and Safer Use
Action Plan (PERSUAP) will be required to recommend permissible
pesticides and their safe application.

**5. Operationalizing Provisions of the IEE**

USAID/Ethiopia's SO 16 Team will make clear that \-- through RFA/Ps,
APSs, contracts, cooperative agreements or grants or sub-grants,
post-award briefings, implementation work plans, etc., as may be the
case \-- the determinations specified in the IEE need to be heeded, and
that implementing partners must put in place appropriate systems or
management tools to ensure recommended mitigation actions are taken.

[]{.mark}

**Monitoring and Evaluation:** As required by ADS 204.5.4, the SO team
will actively monitor ongoing activities for compliance with approved
IEE recommendations, and modify or end activities that are not in
compliance. The SO team shall specify: **who** will monitor, **how**
they will monitor, and **how** they will determine if there are "new or
unforeseen circumstances."

If additional activities are added to this program that are not
described in this document, an amended environmental examination must be
prepared, as stated above.

**APPROVAL OF ENVIRONMENTAL ACTION RECOMMENDED:** (Type Name Under
Signature Line)

**CLEARANCE:**

Mission Director: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date: \_\_\_\_\_\_\_\_\_\_\_

> William Hammink

**CONCURRENCE:**

Bureau Environmental \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Officer: Brian Hirsch Approved: \_\_\_\_\_\_\_\_\_\_ Disapproved:
\_\_\_\_\_\_

**File No:** xxEthiopia1_SO16_Econ_Growth_Amend_Livestock

**CLEARANCE**

General Counsel, Africa Bureau
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date:
\_\_\_\_\_\_\_\_\_\_\_\_

Mary Alice Kleinjan

**ADDITIONAL CLEARANCES:**

Mission Environmental Officer:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date: \_\_\_\_\_\_\_\_
Tadele Gebreselassie, Acting

SO Team Leader, SO 16:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date:
\_\_\_\_\_\_\_\_\_

John McMahon

Sr. Regional Environmental Officer: \_\_\_\_\_\_\_\_/revised,
signed/\_\_\_\_\_ Date: 8/12/05 Walter Knausenberger

**INITIAL ENVIRONMENTAL EXAMINATION**

*AMENDMENT #1*

PROGRAM/ACTIVITY DATA:

**Program/Activity Number:** 663-016

**Country/Region**: Ethiopia

**Program/Activity Title:** Strategic Objective 16: Market-led Economic
Growth and Resiliency Increased

**1.0 BACKGROUND AND PROJECT DESCRIPTION**

1.  **Purpose and Scope of IEE**

This IEE is an amendment of the existing SO 16 IEE covering activities
under DA and Title II-funded, planned activities under SO 16,
"Market-led Economic Growth and Resiliency Increased", part of the
USAID/Ethiopia 2004-2008 Integrated Strategic Plan (ISP). Some of the SO
16 activities are being modified to include at least four projects: 1)
Ethiopia Dairy Development (EDD) Project; 2) Famine Prevention Fund
Pastoral Livelihoods Initiative (FPF-PLI); 3) Ethiopia Sheep and Goat
Productivity Improvement Program (ESGPIP); and 4) Ethiopia Sanitary and
Phytosanitary Standards and Livestock and Meat Marketing (SPS-LMM)
Program. At this stage the full range of activities is not yet well
defined, but the RFAs for the EDD, the ESGPIP and the SPS-LMM were the
source of the analysis in this IEE amendment.

2.  **Background and Description of Planned Activities**

The four projects under the SO 16 represent an expanded range of
activities under within the new Integrated Strategic Plan (ISP). This
ISP sets a new five-year goal to reduce famine vulnerability, hunger and
poverty in Ethiopia. Strategic Objective (SO) 16 - "Market-led Economic
Growth and Resiliency Increased"- is a key component of the ISP. It aims
to accelerate agricultural-based economic growth as a critical pathway
to achieving ISP's five year goal. Improving the economic circumstances
and livelihood choices of the poorest Ethiopians will better enable them
to survive shocks from both natural and man-made disasters and make them
less vulnerable to the effects of poverty, food insecurity and famine
vulnerability.

The SO 16 is adding the following four major projects not previously
included under the SO:

1)  **Ethiopian Dairy Development (EDD) Project**

Ethiopia has the largest population of cattle in Africa, with an
estimated 35 million head maintained by smallholders in transhumant and
agro-pastoral production systems that characterize the arid and
semi-arid regions of the country and in intensive mixed farming systems
common to the highlands that cover 40% of the country. Milk is currently
produced by smallholders in one of several different production systems,
differentiated into seven sub-systems by degree of integration with crop
production, source of feed (grazing of community pastures supplemented
by crop byproducts or stall feeding on purchased forage and
agro-industrial by-products), and by market orientation: sale of milk
and traditional processed products in local markets or to traders vs.
delivery of fluid milk to milk cooling centers for subsequent processing
by the Dairy Development Enterprise. The Ethiopia Dairy Development
Project will support the GFDRE's social and economic development goals
by providing enhanced income opportunities for Ethiopian smallholder
dairy producers, by promoting investment in milk processing and
marketing capacity and by expanding the availability of nutritious dairy
based foods for Ethiopia's growing urban populations.

The objectives of this project are:

1\. **An expanding population of efficient, profitable smallholder dairy
farms** employing sustainable, market-linked production technology to
produce quality milk in demand by processors and consumers;

2\. **Producer organizations** that efficiently organize smallholder
member milk producers and apply best business management practices in
providing services to members, including milk collection and cooling,
market management, training, technical assistance, and representation
and advocacy;

3\. **Milk processors** marketing dairy products recognized for quality
and value, capable of managing and expanding their markets, using
appropriate, state-of-the-art equipment and processes, and creating
opportunity for marketing of increasing volumes of milk produced by
smallholder dairy farms in their supply area (milk shed);

4\. **Increase the private sector inputs**, such as artificial
insemination technicians, community animal health workers, business
development service providers; and

5\. **Increase demand and consumption of milk.** The EDD Project will
take a "milk shed development approach" by assisting the development of
sustainable profitable dairy businesses organized within one or more
"milk sheds". Milk shed is a geographic area that encompasses a
population of smallholder dairies and milk cooling centers (MCCs) that
provide raw milk to a market -- either a population center or, more
commonly, a milk processing plant. The beneficiaries of the Project will
be agribusinesses -- milk processors, wholesalers and retailers, and
service and input providers -- and smallholders receiving Project
assistance will be those associated with a geographic region that
supplies raw milk to processors or other demand centers.

> The project organized under four components will include:
>
> Component 1. Milk shed Development:

-   Assistance to investors, including producer associations in the
    design of MCCs and milk collection systems, and assistance with
    accessing financing for purchase of tankers and cooling equipment;

-   Assistance to smallholder dairy producers in the design of
    production systems, milking facilities and milk handling equipment,
    and in accessing financing;

-   Training for producer association managers and board members in MCC
    management and services marketing;

-   Training for farmers and MCC technical and management staff in
    quality milk production and handling;

-   Training and other assistance for state/regional milk quality
    control and animal disease control officials

-   Cattle breeding program via artificial insemination, distribution of
    bulls and/or embryo transplant.

-   Pasture development program and feeding with concentrate and
    minerals for milk production:

Component 2. Growing Markets for Ethiopian Milk and Dairy Products:

-   Seminars and workshops on milk quality assurance;

-   Technical assistance in design of improved processes and selection
    of equipment;

-   Training for milk processors in HACCP and other quality control
    procedures;

-   Assistance to processors, wholesalers and retailers in marketing
    strategy design;

-   Assistance in brand development and design of advertising campaigns;

-   Collaboration with social services organizations to promote use of
    milk in school and emergency feeding campaigns;

-   Collaboration with food processors on the use of dairy products in
    food formulations, especially those destined for drought- and
    HIV/AIDs-impacted populations;

-   Export market development studies and assistance to Ethiopian dairy
    product exporters.

**Component 3. Support for continued Development of the Dairy Sector:**

-   Formation of an organization to represent the dairy sector, the
    Ethiopian Dairy Council.

-   Policy studies, seminars and workshops;

-   Meetings with GDFRE and donor representatives to discuss new
    opportunities for support to dairy sector development;

-   Evaluate and propose possibility of farmer's
    association/cooperative's participation in the Ethiopian Dairy
    Council;

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-   Preparation of a Project profile that details the strategies being
    employed in the Project for sharing with stakeholders;

-   Publication of flyers and hand-outs on quality issues that will be
    useful as training materials for universities and **Woreda** and
    state government agencies responsible for technical oversight and
    growth of the sector;

-   Preparation of periodic Project "lessons learned studies" and
    reports targeted to leaders of cooperatives and MMC managers in the
    target milk shed and in other milk sheds, to be shared via the new
    Agri-Net and other digital and electronic media;

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-   Co-hosting of workshops with the Ethiopia Dairy Council where
    lessons learned from the Project are publicized among sector
    stakeholders.

-   Advertisement campaign:

2)  **Pastoralist Livelihoods Initiative (FPF-PLI) Project**

This project proposes to use \$29.2 million of 2005 Famine Prevention
Funds to undertake urgent and timely interventions to respond
immediately to the current emergency, and to improve livestock and early
warning systems to reduce the prospect of famine from recurring droughts
in the pastoralist areas of Ethiopia. Partners will strengthen
livestock-based livelihoods through cash infusions to the pastoralist
population from targeted, emergency de-stocking linked to livestock
markets; restocking with improved breeds of small ruminants (sheep and
goats) and maintaining existing breeding stock; and by exploiting
immediate opportunities for long term livestock market development
(including policy reform and public/private partnerships for systems
improvement).

While 65% of Ethiopia's area is suitable for pastoralists, the
geographic focus of the program will be on areas more critically
affected by recent droughts, the Afar and Somali Regions in the East,
and Southern Oromo Region lowlands (the Borena areas), which contain 93%
of the pastoralist population.

Proposed Components and activities include:

**Component 1: Stabilize and Adjust Herd Size to Pasture Conditions**

-   Reinforce the market for emergency off take and provide credit for
    restocking

-   Timely de-stocking involving immediate purchase and slaughter of
    animals and using it as food assistance and for use of the animals
    to commercial markets (about 30,000 to 100,000)

-   Restocking with improved breeds of small ruminants and

-   Protection of breeding stock , e.g. water, fodder

-   Environmental Degradation and Land Management

**Component 2: Early Warning and Livestock Response Systems**

Early warning system in Afar region will be initiated and will be linked
to a protocol of actions on livestock in response to triggers from the
early warning system and to the Livestock Early Warning System (LEWS)

-   Afar region baselines

-   Overall livestock early warning component for all pastoralists
    (including LEWS)

**Component 3: Expand New and Traditional Markets for Live Animals and
Animal Products**

-   Market and trekking route infrastructure development (these may
    include holding yards, watering points, clutches, overnight-stay
    holding grounds, auction and marketing yards, etc)

-   Trade promotion initiatives, which may include developing a one stop
    shop for all permits and certificates required for export of live
    animals or livestock products, reducing or eliminating export taxes
    and fees and export currency and exchange controls to facilitate
    globally competitive prices, establishing a simple system of grades
    and standards to promote the export trade of livestock and meat and
    facilitating a safe and rapid export procedures at all border points
    for live animals and livestock products.

-   In-country sanitary and phyto-sanitary support mainly focusing on
    policy changes to allow development of a more efficient sanitary
    system for livestock and meat, simplification of regulatory
    procedures and documentation,

3)  **Ethiopia Sheep and Goat Productivity Improvement Program
    (ESGPIP)**

Ethiopia has a large population of goats and sheep numbering about 18
million and 24 million respectively. Goats are important animals for
diversifying livestock production and, thus, are an integral part of
tropical agricultural systems.  In Ethiopia, goats are found in all
agro-ecological zones.  About one-third of the goats of Ethiopia are
found in the highlands.  Some efforts have been made to assign Ethiopian
goats to type/breed categorizations based on variables other than the
functional parameters. The proposed sheep and goat productivity
improvement program will contribute to the SO16 objectives by adding the
increasing: a) exports and b) domestic sales of USAID-supported
agricultural cooperatives and other agricultural marketing groups.

**The Proposed intervention areas under this project are:**

-   Strengthen the human, academic and institutional capacities of
    Development Agent training programs, including at Technical,
    Vocational Education, and Training (TVET) colleges.

-   Promote sheep and goat enterprise development including fattening
    operations, links to financing, and strengthening of farmer and
    pastoralist organizations.

-   Introduce improved sheep and goat genetics (Awassi sheep, Dorper
    sheep, Boer goat) in order to increase milk production, growth rate
    and muscling, and dressing percentage of local sheep and goat
    populations.

-   Increase institutional capacities in artificial insemination,
    multiple ovulation and embryo transfer technologies so that future
    importation of superior sires will not be necessary.

-   Enhance productivity and economic returns of small ruminant meat
    production by crossbreeding with superior imported sires, and
    preserving and selecting indigenous genotypes.

-   Provide support for the National Animal Health Research Center to
    address problems related to excess mortality of small ruminant and
    damage to hides due to pests.

-   Provide satellite access to improve internet availability and voice
    over IP to allow researchers to communicate with others in global
    community who are addressing similar problems of sheep and goat
    production, marketing, consumption and export of live animals and
    meat products.

**The program is expected to have the following results:**

-   Introduction of more productive breeds of sheep (Awassi, Dorper) and
    goats (Boer) to Ethiopian producers

-   Increased capacity in Ethiopia for small ruminant breeding
    (artificial insemination, embryo transplants, multiple ovulation)

-   Improved productivity of sheep and goats through improved sheep and
    goat breeds and better animal husbandry (nutrition, health)

-   Improved capacity to undertake animal health research programs;

-   Improved capacity for adaptive research and dissemination of
    improved sheep and goat management practices ;

-   Improved capacity to preserve and select indigenous genotypes of
    sheep and goats.

-   Improved capacity for training government and non-governmental
    development agents in modern sheep and goat production and
    marketing.

-   Increased adoption of modern management practices for sheep and goat
    production.

-   Increased marketing of sheep and goats and meat products.

4)  **Ethiopia Sanitary and Phytosanitary Standards and Livestock and
    Meat Marketing (SPS-LMM) Program**

Currently there are approximately 5 -- 7 export meat plants and 22
tanneries of hides and skins. These plants are in general operating at
less than 50 percent of their planned capacity. The plants are having
varied degrees of success in exporting meat, hides and skins. The export
meat plants face a number of constraints in productivity. The level of
technology employed is low and limits business performance. Management
skills have not kept pace with the requirements in the export market. A
high cost of access to the international market affects the
competitiveness of the meat exporters.

The situation in Ethiopia is that SPS issues have become an important
determinate of the development of the Ethiopian livestock sector. The
impact of SPS regulations imposed by importing countries has had a
significant effect on the livestock producers, traders, processors and
consumers of meat. Improved SPS standards will provide the framework in
which all stakeholders will operate.

> **The proposed activities under this project are:**
>
> **Objective 1. Improve Capacity of National and Regional Veterinary
> Office to Undertake SPS Activities in Support of Increased Livestock
> and Meat Exports**
>
> **IR 1.1. Increase capacity building of the animal health services to
> set and meet international standards through conducting risk
> assessments, verification, trace-back, and certification.**
>
> [Activity 1.1.1.]{.underline} Provide an APHIS-type veterinarian to
> assist the animal health services and implement the SPS capacity
> building initiative

Improve the linkage with US government agencies, university, and
research organizations for disease intelligence, surveillance and
eradication programs.

> [Activity 1.1.2.]{.underline} Provide short-term training to key
> personnel in veterinary delivery systems (e.g. meat inspectors)

-   Training on design of statistical models for serological surveys for
    disease monitoring

-   Training meat inspectors to meet the growing number of projected
    slaughter facilities

-   Training in risk analysis in the management and control of animal
    disease for complying with import market requirement.

-   GIS training for national level epidemiologist and for the regions.

> [Activity 1.1.3.]{.underline} Clarify and improve the roles and
> coordination between national and regional veterinary services.

-   Facilitate direct supervision to central veterinary service for all
    national disease programs and import and export programs. This
    involves the design and supervision of programs by the national
    office which will be executed by the regional offices (e.g. the
    quarantine centers supervised by the national veterinary office,
    disease surveillance, national vaccination programs)

> [Activity 1.1.4.]{.underline} Promote the organization and
> participation of GOE and the livestock industry in regional (East
> Africa and Nile Basin Countries) animal health programs to advocate
> for commodity based approach and certification.

-   IPST can host a regional summit on animal health and SPS
    requirements and related disease surveillance and control. This will
    include OIE, FAO and representatives from Middle East countries. A
    grant can be provided to IPST to organize the regional meeting.

-   The forum will be used to advocate for a commodity base approach and
    certification. IPST will lead this effort.

> [Activity 1.1.5.]{.underline} Create the forum for private sector
> participation in national animal health policies and programs

-   A field trip is proposed to the USA or other appropriate countries
    for key industry and public sector officials.

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-   Facilitate the formation of the Ethiopian Animal Health Association
    composed public and private animal health, industry, academic, and
    service providers (e.g. U.S. Animal Health Association USAHA)

-   A feasibility study of the cold chain system for the distribution of
    pharmaceuticals and conduct trainings of drug distributors.

-   Provision of kerosene refrigerators through the Rural Services Loan
    Fund for distribution of pharmaceutical drugs.

**IR 1.2. Increase the capacity for the livestock and meat industry to
comply with the standards of key importing countries**

[Activity 1.2.1.]{.underline} Undertake research on the health
regulations and standards in key importing countries.

-   Obtain information directly from animal health officials in
    importing countries on their preferred SPS requirements for
    Ethiopian live animals and meat. A small grant can be made to
    commission a reporter to compile relevant information.

[Activity 1.2.2.]{.underline} Assist in development of bi-lateral trade
agreements for livestock and meat

**IR 1.3. Establish a verifiable and efficient system for the inspection
and certification of the livestock -- meat for exports.**

[Activity 1.3.1.]{.underline} Full cost recovery for inspection and
certification services including vaccinations for export programs

-   Setting appropriate slaughter inspection fees based on reimbursement
    of salaries and not on a per head basis with guidance from the
    private sector

-   Charge for the full cost of vaccine, delivery and overhead for
    vaccinations services

[Activity 1.3.2.]{.underline} Establish a check-off fund for emergency
health actions necessary to retain export markets

The check off fund will be modeled after programs in the U.S. and Latin
America where the private sector controls these funds. Government
officials will have a supervisory role. Funds can be used to fund
important interventions necessary to retain export market access, e.g.
FMD outbreaks. Conduct a workshop on creating a check-off fund for
public and private sector emergency funds.

[Activity 1.3.3.]{.underline} Establish an animal health protocol for
the export of livestock and meat recognized by importing country
markets.

A two-stage system of pre-screening and quarantine for livestock being
purchased for fattening and slaughter and live shipments to the Gulf
Markets is proposed. The system can be established in three areas:
Borena, Afar and the Highlands. The pre-screen sites will be established
in coordination with Producer Livestock Marketing Cooperatives (PLMC),
private traders, the private sector meat plants and the National
Veterinary Service (NVS). These lots of animals can be classified as
export quality livestock and meet the most stringent requirements of the
potential importing countries. First step is to conduct a feasibility
study on the locations for the quarantine areas.

[Activity 1.3.4.]{.underline} Joint venture for the production of animal
vaccines

Conduct a feasibility study of joint venture of the National Vaccine
Institute (NVI) and promote the opportunity for private sector
investors, such international biologics and pharmaceutical companies.
Develop a tender document and promote to international clients.

###### Objective 2. Improve Ethiopia's competitiveness in the world market for livestock and meat

The emphasis is on creating an operationally efficient marketing system
that will support all stakeholders in the livestock and meat sub-sector.

###### 

###### IR 2.1. Improvement in the operating efficiency in exporting livestock and meat

[Activity 2.1.1.]{.underline} Improved market integration by creating
and expanding direct linkages between producer marketing groups and
export abattoirs.

-   Review the performance of coops currently operating with links to
    export abattoirs

-   Provision of seed capital or loans

-   Training on business management, production and selection techniques
    and livestock marketing

-   Small grant to international NGO to conduct trainings

[Activity 2.1.2]{.underline} Market information to better link
producers, traders, abattoirs and exporters to world market conditions

-   Support to market information gathering of external market prices
    and dissemination to exporters and the LFMD/LFMD and to coops. Fund
    with small business grant to private firm.

[Activity 2.1.3]{.underline}. Establishment of grades and standards
based on market requirements in key importing countries

-   Involvement of all stakeholders in the development of a system of
    export grades and standards. Small grant to private firm to research
    the best grades and standards and propose a national standardization
    with the industry. Develop educational materials.

###### 

###### IR 2.2. Improve the market operations and infrastructure to reduce marketing costs in the exports of livestock and meat

[Activity 2.2.1]{.underline}. "One stop shop" for export documents and
payments at the federal level.

-   Streamline the process for obtaining necessary export document and
    payment of fees by establishing one office to coordinate.

[Activity 2.2.2]{.underline}. Improved procurement system and
reconditioning of animals (procuring, collecting, transport, and
conditioning)

-   Provision of dedicated livestock trucks consisting of long and short
    wheel- base on loan. The trucks to be managed either by a
    specialized livestock transport company, a live animal exporters or
    through the individual abattoirs.

-   Regional/Federal Governments should support the abattoirs in
    acquiring/leasing between 50 -- 100 hectares each as holding grounds
    in close proximity to the abattoirs

[Activity 2.2.3.]{.underline} Appropriate utilization of market fees

-   Local governments/councils collecting market fees at points of
    origin to be instructed by Regional/Federal government to utilize
    part of the proceeds for constructing standard market yards with all
    the necessary provisions. USAID could provide assistance to the LFMD
    in availing various livestock market yard designs to choose from.
    Study tours to be arranged for relevant federal/regional staff to
    sale yards in Mexico, Colombia and the USA.

[Activity 2.2.4]{.underline}. Introduce improved meat technologies for
increased exports of chilled meat by land and sea routes.

-   Conduct research to identify the causes of meat darkening in
    highland sheep in order to increase its shelf life. EARO in
    collaboration with a leading international institution in the field
    to spearhead the research.

-   A cost-sharing pilot vacuum packing and associated cold storage
    project to be established with one of the willing abattoirs with the
    understanding that other abattoirs could get access to the vacuum
    packing machine in the pilot phase

-   Provision of loans for acquiring de-boning, vacuum packing and
    associated cold storages for all other abattoirs;

-   Training meat and food technologists for abattoirs and feedlot
    managers

[Activity 2.2.5.]{.underline} Improve the competitiveness of Ethiopian
exports through cost-effective transportation system

-   Encourage the transportation of meat products by sea to reduce air
    freight costs by adapting vacuum packing technologies for increased
    shelf life. Shipping companies based in Addis have confirmed that
    they can safely deliver vacuum packed products to destinations. This
    is a pilot project with Maersk/Sealand.

**IR 2.3. Enhance the environment for exports of livestock and meat to
key targeted import markets**

[Activity 2.3.1]{.underline}. Promotion of Ethiopian livestock and meat
(EMEA and GEM project)

-   Promotional measures to be undertaken through trade missions and
    consulates to encourage foreign investment in new abattoirs for
    increased national output. One trade mission per year for private
    exporters.

-   Support promotion of Ethiopian livestock and meat products in
    foreign markets such as through brochures, and web-sites and
    advertising (in-store and television). Exporters' Association should
    strive for representation in major foreign markets for monitoring
    the dynamics of the market and identifying new market opportunities.
    Create website that is linked to SPS website.

-   Support commissioning of market research and surveys in major export
    destinations to determine market requirements, identification of
    existing and potential customers, and suitable distribution outlets.
    This should enable designing of marketing strategies tailored for
    specific markets.

[Activity 2.3.2]{.underline}. Policies that will improve the marketing
of livestock and meat

-   Call a National Stakeholders Forum to discuss and resolve critical
    issues such as:

```{=html}
<!-- -->
```
-   Reduction/elimination of transit fees except at points of origin;

-   Introducing a 'One-Stop Shop' to avoid lengthy bureaucratic
    procedures for export processing

-   Reduction of meat inspection fee to reflect the value of services
    provided

-   Reduction/elimination of other unwarranted fees applied by other
    ministries at the Federal level

```{=html}
<!-- -->
```
-   Encourage bi-lateral agreements which stipulate the acceptance of
    in-country quarantine inspection for cost effectiveness and to meet
    importing country requirements.

    **2.0** **COUNTRY AND ENVIRONMENTAL INFORMATION (BASELINE
    INFORMATION)**

For detailed discussion of this section see the SO 16 IEE:
34Ethiopia3_So16_EG.

3.0 EVALUATION OF PROJECT/PROGRAM ISSUES WITH RESPECT TO ENVIRONMENTAL
IMPACT POTENTIAL

**3.1 Capacity building, training and technical support**

Many activities proposed under the four projects do not involve any
biophysical interventions. They involve capacity building, training,
studies meetings and policy changes which are not likely to have
potential adverse impacts on environment. The EDD Project, however, has
one activity under Component 1 that is likely to have negative
environmental impact: cattle breeding program via artificial
insemination, distribution of bulls and/or embryo transplant, animal
disease control and pasture development program. All the other
activities involve providing technical assistance, analyses, meetings
and workshops and policy changes to encourage the growth and development
of the sector.

Similarly the FPF-PLI Project under the three components**: 1) Stabilize
and Adjust Herd Size to Pasture Conditions; 2) Early Warning and
Livestock Response System; 3); Expand New and Traditional Markets for
Live Animals and Animal Products,** involve trade promotion, initiatives
including reducing or eliminating export taxes and fees and easing
exchange controls, and policy changes for in country sanitary and
phytosanitary support to develop livestock and meat regulatory
procedures, emergency off-take, de-stocking, baseline surveys and
Livestock early warning system which do not propose any biophysical
interventions. Several aspects under this project including development
of market and trekking route infrastructure (holding yards, watering
points, clutches, auction yards, etc) however, are likely have potential
environmental impacts, restocking with improved breeds of ruminants and
introducing exotic breeds to improve goat and sheep productivity.

The other two projects**: ESGPIP** project and **SPS-LMM** involve
strengthening the capacities for development agents, providing satellite
access to improve internet access, promoting sheep and goat enterprise
development including fattening operations, links to financing,
strengthening of farmer and pastoralist organizations, improving the
regulatory framework, changing policies, advocacy, etc, all without any
biophysical interventions. These activities are not likely to have
negative environmental impacts.

#####  {#section-2 .unnumbered}

2.  **Activities likely to result in change in environment**

    The EDD project proposes to have cattle breeding program via
    artificial insemination, distribution of bulls and/or embryo
    transplant, animal disease control and pasture development program
    to improve the stock of the dairy herd in the project area. Although
    the details of this program are not yet defined it is possible to
    lead to introduction of exotic breeds in the area which may be
    susceptible to local livestock diseases or lead to introduction of
    new livestock diseases. It is therefore recommended that the program
    be implemented under the supervision of experts and relevant
    government authorities to ensure long term sustainability of the
    project and that no new livestock diseases are introduced. The
    program also mentions pasture development. While no details have
    been provided yet, this may involve introducing new fodder crops or
    even crop protection measures including pesticides and the use of
    chemical fertilizers to enhance production. USAID environmental
    regulations urges caution where pesticides may be used and requires
    that Pesticide evaluation and an action plan be done before this any
    pesticides could be procured or used. A detailed action plan to be
    used by implementing partners who will be using pesticides is
    contained in the *USAID/Ethiopia Crop Production and Pesticide
    Evaluation Report and Safer Use Action Plan* (PERSUAP), approved by
    USAID/W in August 2003, and USAID should ensure that is followed by
    implementing partners.

    The **FPF-PLI** Project has one activity proposing to develop
    trekking and marketing infrastructure. The details of what this may
    involve are not yet worked out and are not known at this particular
    point including the number of animals that are likely to be
    involved, the number of water points that may be developed, the
    number of stopping points and holding yards and their sizes, etc.
    These infrastructures are not however likely to be large scale at
    any one point, but could potentially lead to conflicts along the
    trekking routes, over grazing around the water points and on the
    route, lead to introduction of livestock diseases near the stock
    routes, etc. These impacts can easily be mitigated by good planning
    and the screening of individual activities using the Africa Bureau
    Environmental Screening Form to identify potential impacts and
    mitigating them.

Both FPF-PLI and ESGPIP projects also propose upgrading the quality of
the local breeds which would raise similar issues as those discussed
above under EDD.

Concerns arise with respect to some of the interventions related to
"cattle breeding; restocking with improved breeds of small ruminants;
and building capacities in artificial insemination, multiple ovulation
and embryo transfer technologies." USAID's interventions in these areas
will be in line with GoE government approved technologies and, hence,
will have the full blessing of the Ethiopian government (Ministry of
Agriculture and Rural Development \[MoARD\]) and the national and
regional research institutions. Suitability of breeds to the country and
the different localities will be guided by what has already been
established by the research and development sectors. Such issues will be
addressed as part and parcel of the deliberative implementation process,
and will be consistent with the Africa Bureau *Environmental Guidelines
for Small-Scale Activities in Africa (EGSSAA)
(*<http://www.encapafrica.org/SmallScaleGuidelines.htm>), specifically
the chapter on Livestock

4.0. RECOMMENDED THRESHOLD DECISIONS & MITIGATION ACTIONS (INCLUDING
MONITORING AND EVALUATION)

**4.1 Categorical Exclusions, Threshold Decisions, and Deferral.**

The table below summarizes the activities and recommended threshold
determinations.

**4.2 [Mitigating Measures]{.underline}:**

SO16 IEE: 34 Ethiopia_SO_EG has detailed mitigation measures for the
project activities. Most of the activities covered under that IEE are
continuing and those mitigation measures and conditions continue to
apply and binding as long as those activities are continued. This
section, therefore, only covers the additional specific activities
outlined under this amendment.

**4.2.1 Ethiopia Dairy Development (EDD) Program**

**Component 1. Milk Shed Development**

-   Cattle breeding program via artificial insemination, distribution of
    bulls and/or embryo transplant.

The breeding program shall be done by experts working with research
institutions to ensure that the breeds introduced are the most suitable
for Ethiopia. Where animal diseases control measures are proposed this
IEE cross references the recommendations made under Southern Tier
Initiative (STI), which extends through FY06 and is covered by an
approved IEE (31Ethiopia11_SPO_12_SC_Animal_Health (7/2/01).

The program partners and cooperating sponsors shall incorporate sectoral
guidelines for environmentally sound design consistent with the Africa
Bureau *Environmental Guidelines for Small-Scale Activities in Africa
(EGSSAA) (*<http://www.encapafrica.org/SmallScaleGuidelines.htm>), esp.
the chapter on Livestock. Such issues will be addressed as part and
parcel of the deliberative implementation process.

If pasture development mentioned under this section involves supporting
establishing forage fields involving crop protection measures, this IEE
cross references the Pesticide Evaluation Report and Safe Use Action
Plan (33Ethiopia2_PERSUAP_SO7_SO11.doc\_(8/4/03)) developed and approved
by USAID/W in August 2003, and USAID should ensure that is followed by
implementing partners.

USAID's interventions in these areas will be in line with GoE government
approved technologies and, hence, will have the full blessing of the
Ethiopian government (Ministry of Agriculture and Rural Development
\[MoARD\]) and the national and regional research institutions.
Suitability of breeds to the country and the different localities will
be guided by what has already been established by the research and
development sectors.

**TABLE 1: Threshold Determinations for Illustrative activities, by
major new Livestock-related Project/Program**

+--------------------------+--------------------+----------------------+
| **Activity**             | **Determination**  | **Mitigating         |
|                          |                    | Action**             |
+--------------------------+--------------------+----------------------+
| **1: Ethiopian Dairy     |                    |                      |
| Development Program**    |                    |                      |
+--------------------------+--------------------+----------------------+
| **Component 1**          |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Assistance to        | **Categorical      |                      |
|     investors, including | Exclusion** for    |                      |
|     producer             | assistance in the  |                      |
|     associations in the  | design of MCCs,    |                      |
|     design of Milk       | assistance to      |                      |
|     Collection Centers   | smallholder dairy  |                      |
|     (MCCs )and           | producers and all  |                      |
|     collection systems,  | trainings to       |                      |
|     and assistance with  | different groups   |                      |
|     accessing financing  | involved per 22CFR |                      |
|     for purchase of      | 216.2(c)(2) (i) )  |                      |
|     tankers and cooling  | \[education,       |                      |
|     equipment            | technical          |                      |
|                          | assistance,        |                      |
| -   Assistance to        | training\], (iii)  |                      |
|     smallholder dairy    | \[analyses,        |                      |
|     producers in the     | studies, workshops |                      |
|     design of production | and meetings\] and |                      |
|     systems, milking     | (v) \[document and |                      |
|     facilities and milk  | information        |                      |
|     handling equipment,  | transfer\].        |                      |
|     and in accessing     |                    |                      |
|     financing;           |                    |                      |
|                          |                    |                      |
| -   Training for         |                    |                      |
|     producer association |                    |                      |
|     managers and board   |                    |                      |
|     members in MCC       |                    |                      |
|     management and       |                    |                      |
|     services marketing;  |                    |                      |
|                          |                    |                      |
| -   Training for farmers |                    |                      |
|     and MCC technical    |                    |                      |
|     and management staff |                    |                      |
|     in quality milk      |                    |                      |
|     production and       |                    |                      |
|     handling;            |                    |                      |
|                          |                    |                      |
| -   Training and other   |                    |                      |
|     assistance for       |                    |                      |
|     state/regional milk  |                    |                      |
|     quality control and  |                    |                      |
|     animal disease       |                    |                      |
|     control officials    |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Cattle breeding      | **Negative         | Conditions being     |
|     program via          | determination with | that the breeding    |
|     artificial           | conditions** for   | program shall be     |
|     insemination,        | cattle breeding    | done by experts      |
|     distribution of      | program via        | working with         |
|     bulls and/or embryo  | artificial         | research             |
|     transplant.          | insemination,      | institutions to      |
|                          | distribution of    | ensure that the      |
| -   Pasture development  | bulls and/or       | breeds introduced    |
|     program and feeding  | embryo transplant, | are the most         |
|     with concentrate and | animal disease     | suitable for         |
|     minerals for milk    | control officials  | Ethiopia. Where      |
|     production           | and pasture        | animal diseases      |
|                          | development        | control measures are |
|                          | program per        | proposed this IEE    |
|                          | 216.3(a)(2)(iii)   | cross references the |
|                          |                    | recommendations made |
|                          | Introduced fodder  | under Southern Tier  |
|                          | crops improve      | Initiative (STI),    |
|                          | animal feed and    | which extends        |
|                          | protect the soil.  | through FY06 and     |
|                          | Other relevant     | covered by an        |
|                          | activities include | approved IEE         |
|                          | silage making.     | (31Ethiopia11_SPO    |
|                          |                    | _12_SC_Animal_Health |
|                          |                    | (7/2/01). The        |
|                          |                    | program partners and |
|                          |                    | cooperating sponsors |
|                          |                    | shall incorporate    |
|                          |                    | sectoral guidelines  |
|                          |                    | for environmentally  |
|                          |                    | sound design for     |
|                          |                    | various sectoral     |
|                          |                    | projects in          |
|                          |                    | [www.encapafrica.or  |
|                          |                    | g/SmallScaleGuidelin |
|                          |                    | es.htm](http://www.e |
|                          |                    | ncapafrica.org/Small |
|                          |                    | ScaleGuidelines.htm) |
+--------------------------+--------------------+----------------------+
| Component 2. Growing     |                    |                      |
| Markets for Ethiopian    |                    |                      |
| Milk and Dairy Products: |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Seminars and         | **Categorical      | Training in private  |
|     workshops on milk    | Exclusion** is     | and international    |
|     quality assurance;   | recommended for    | quality assurance    |
|                          | seminars and       | standards such as    |
| -   Technical assistance | workshops on milk  | HACP, ISO 8000,      |
|     in design of         | quality assurance, | 9000, and 14001 also |
|     improved processes   | Technical          | reinforces           |
|     and selection of     | assistance in      | environmental and    |
|     equipment;           | design, assistance | social quality       |
|                          | for marketing,     | assurance            |
| -   Training for milk    | brand development, |                      |
|     processors in HACCP  | promotion of use   |                      |
|     and other quality    | of milk in school  |                      |
|     control procedures   | and emergency      |                      |
|                          | feeding campaigns, |                      |
| -   Assistance to        | collaboration with |                      |
|     processors,          | food processors on |                      |
|     wholesalers and      | the use of dairy   |                      |
|     retailers in         | products in food   |                      |
|     marketing strategy   | formulations and   |                      |
|     design;              | export market      |                      |
|                          | studies per 22CFR  |                      |
| -   Assistance in brand  | 216.2(c)(2) (i) )  |                      |
|     development and      | \[education,       |                      |
|     design of            | technical          |                      |
|     advertising          | assistance,        |                      |
|     campaigns;           | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
| -   Collaboration with   | studies, workshops |                      |
|     social services      | and meetings\] and |                      |
|     organizations to     | (v) \[document and |                      |
|     promote use of milk  | information        |                      |
|     in school and        | transfer\].        |                      |
|     emergency feeding    |                    |                      |
|     campaigns;           |                    |                      |
|                          |                    |                      |
| -   Collaboration with   |                    |                      |
|     food processors on   |                    |                      |
|     the use of dairy     |                    |                      |
|     products in food     |                    |                      |
|     formulations,        |                    |                      |
|     especially those     |                    |                      |
|     destined for         |                    |                      |
|     drought- and         |                    |                      |
|     HIV/AIDs-impacted    |                    |                      |
|     populations;         |                    |                      |
|                          |                    |                      |
| -   Export market        |                    |                      |
|     development studies  |                    |                      |
|     and assistance to    |                    |                      |
|     Ethiopian dairy      |                    |                      |
|     product exporters.   |                    |                      |
+--------------------------+--------------------+----------------------+
| **Component 3 Support    |                    |                      |
| for continued            |                    |                      |
| Development of the Dairy |                    |                      |
| Sector**                 |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Formation of an      | **Categorical      |                      |
|     organization to      | Exclusion** is     |                      |
|     represent the dairy  | recommended for    |                      |
|     sector, the          | formation of an    |                      |
|     Ethiopian Dairy      | organization to    |                      |
|     Council;             | represent the      |                      |
|                          | dairy sector,      |                      |
| -   Policy studies,      | policy studies,    |                      |
|     seminars and         | seminars and       |                      |
|     workshops;           | workshops,         |                      |
|                          | meetings with      |                      |
| -   Meetings with GDFRE  | GDFRE and donor    |                      |
|     and donor            | representatives,   |                      |
|     representatives to   | evaluation of      |                      |
|     discuss new          | farmers            |                      |
|     opportunities for    | association,       |                      |
|     support to dairy     | preparation of     |                      |
|     sector development;  | project profiles,  |                      |
|                          | publication of     |                      |
| -   Evaluate and propose | flyers and         |                      |
|     possibility of       | handouts, reports, |                      |
|     farmer's             | workshops and      |                      |
|     a                    | Advertisement      |                      |
| ssociation/cooperative's | campaigns, per 22  |                      |
|     participation in the | CFR 216.2          |                      |
|     Ethiopian Dairy      | (c)(2)(i)          |                      |
|     Council;             | \[education,       |                      |
|                          | technical          |                      |
| ```{=html}               | assistance,        |                      |
| <!-- -->                 | training\], (iii)  |                      |
| ```                      | \[analyses,        |                      |
| -   Preparation of a     | studies, workshops |                      |
|     Project profile that | and meetings\] and |                      |
|     details the          | (v) \[document and |                      |
|     strategies being     | information        |                      |
|     employed in the      | transfer\].        |                      |
|     Project for sharing  |                    |                      |
|     with stakeholders;   |                    |                      |
|                          |                    |                      |
| -   Publication of       |                    |                      |
|     flyers and hand-outs |                    |                      |
|     on quality issues    |                    |                      |
|     that will be useful  |                    |                      |
|     as training          |                    |                      |
|     materials for        |                    |                      |
|     universities and     |                    |                      |
|     Woreda and state     |                    |                      |
|     government agencies  |                    |                      |
|     responsible for      |                    |                      |
|     technical oversight  |                    |                      |
|     and growth of the    |                    |                      |
|     sector;              |                    |                      |
|                          |                    |                      |
| -   Preparation of       |                    |                      |
|     periodic Project     |                    |                      |
|     "lessons learned     |                    |                      |
|     studies" and reports |                    |                      |
|     targeted to leaders  |                    |                      |
|     of cooperatives and  |                    |                      |
|     MMC managers in the  |                    |                      |
|     target milk shed and |                    |                      |
|     in other milk sheds, |                    |                      |
|     to be shared via the |                    |                      |
|     new Agri-Net and     |                    |                      |
|     other digital and    |                    |                      |
|     electronic media;    |                    |                      |
|                          |                    |                      |
| ```{=html}               |                    |                      |
| <!-- -->                 |                    |                      |
| ```                      |                    |                      |
| -   Co-hosting of        |                    |                      |
|     workshops with the   |                    |                      |
|     Ethiopia Dairy       |                    |                      |
|     Council where        |                    |                      |
|     lessons learned from |                    |                      |
|     the Project are      |                    |                      |
|     publicized among     |                    |                      |
|     sector stakeholders; |                    |                      |
|                          |                    |                      |
| -   Advertisement        |                    |                      |
|     campaign:            |                    |                      |
+--------------------------+--------------------+----------------------+
| **2) Famine Fund         |                    |                      |
| Project**                |                    |                      |
+--------------------------+--------------------+----------------------+
| **1. Expand New and      |                    |                      |
| Traditional Markets for  |                    |                      |
| Live Animals and Animal  |                    |                      |
| Products**               |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Develop Market and   | **Negative         | Conditions are the   |
|     trekking route       | determination with | use of the           |
|     infrastructure       | conditions** for   | Environmental        |
|     (including holding   | market and         | Screening Form       |
|     yards, watering      | trekking route     | (ESF)/Environmental  |
|     points, clutches,    | infrastructure     | Review Form (ERR)    |
|     overnight-stay       | (holding yards,    | when developing the  |
|     holding grounds,     | watering points,   | anticipated small    |
|     auction and          | clutches, auction  | scale trekking       |
|     marketing yards,     | yards, etc) per    | infrastructure       |
|     etc)                 | 216.3(a)(2)(iii)   | including livestock  |
|                          |                    | water points,        |
| -                        |                    | auction yards,       |
|                          |                    | livestock holding    |
|                          |                    | grounds, etc, to     |
|                          |                    | identify potential   |
|                          |                    | environmental        |
|                          |                    | impacts and apply    |
|                          |                    | appropriate          |
|                          |                    | mitigation measures. |
|                          |                    | The Environmental    |
|                          |                    | Guidelines for Small |
|                          |                    | Scale Activities in  |
|                          |                    | Africa (EGSSAA)      |
|                          |                    |                      |
|                          |                    | [www.encapafrica.or  |
|                          |                    | g/SmallScaleGuidelin |
|                          |                    | es.htm](http://www.e |
|                          |                    | ncapafrica.org/Small |
|                          |                    | ScaleGuidelines.htm) |
|                          |                    | contains relevant    |
|                          |                    | details on small     |
|                          |                    | scale                |
|                          |                    | infrastructural      |
|                          |                    | development. Mission |
|                          |                    | staff and            |
|                          |                    | implementing         |
|                          |                    | partners were        |
|                          |                    | trained on how to    |
|                          |                    | use the above        |
|                          |                    | screening forms and  |
|                          |                    | guidelines in a      |
|                          |                    | Environmental        |
|                          |                    | Assessment and       |
|                          |                    | Management workshop  |
|                          |                    | held in Sodere,      |
|                          |                    | February 2005.       |
+--------------------------+--------------------+----------------------+
| -   Trade promotion      | **Categorical      |                      |
|     initiatives, which   | Exclusion** is     |                      |
|     may include          | recommended trade  |                      |
|     developing a one     | promotion          |                      |
|     stop shop for all    | initiatives        |                      |
|     permits and          | including reducing |                      |
|     certificates         | or eliminating     |                      |
|     required for export  | export taxes and   |                      |
|     of live animals or   | fees and easing    |                      |
|     livestock products,  | exchange controls, |                      |
|     reducing or          | and policy changes |                      |
|     eliminating export   | for in country     |                      |
|     taxes and fees and   | sanitary and       |                      |
|     export currency and  | phyto-sanitary     |                      |
|     exchange controls to | support to develop |                      |
|     facilitate globally  | livestock and meat |                      |
|     competitive prices,  | regulatory         |                      |
|     establishing a       | procedures, per    |                      |
|     simple system of     | 22CFR 216.2(c)(2)  |                      |
|     grades and standards | (i) ) \[education, |                      |
|     to promote the       | technical          |                      |
|     export trade of      | assistance,        |                      |
|     livestock and meat   | training\], (iii)  |                      |
|     and facilitating a   | \[analyses,        |                      |
|     safe and rapid       | studies, workshops |                      |
|     export procedures at | and meetings       |                      |
|     all border points    |                    |                      |
|     for live animals and |                    |                      |
|     livestock products.  |                    |                      |
|                          |                    |                      |
| -   In-country sanitary  |                    |                      |
|     and phyto-sanitary   |                    |                      |
|     support mainly       |                    |                      |
|     focusing on policy   |                    |                      |
|     changes to allow     |                    |                      |
|     development of a     |                    |                      |
|     more efficient       |                    |                      |
|     sanitary system for  |                    |                      |
|     livestock and meat,  |                    |                      |
|     simplification of    |                    |                      |
|     regulatory           |                    |                      |
|     procedures and       |                    |                      |
|     documentation,       |                    |                      |
+--------------------------+--------------------+----------------------+
| **2. Stabilize and       |                    |                      |
| Adjust Herd Size to      |                    |                      |
| Pasture Conditions**     |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Reinforce the market | **Categorical      |                      |
|     for emergency off    | Exclusion** is     |                      |
|     take and provide     | recommended for    |                      |
|     credit for           | reinforcing the    |                      |
|     restocking           | market for         |                      |
|                          | emergency off-take |                      |
| -                        | and timely         |                      |
|                          | de-stocking        |                      |
|                          | involving          |                      |
|                          | immediate purchase |                      |
|                          | and slaughter of   |                      |
|                          | animals per 22 CFR |                      |
|                          | 216.2 (c)(2)(i)    |                      |
|                          | \[education,       |                      |
|                          | technical          |                      |
|                          | assistance,        |                      |
|                          | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
|                          | studies, workshops |                      |
|                          | and meetings\] and |                      |
|                          | (v) \[document and |                      |
|                          | information        |                      |
|                          | transfer\].        |                      |
+--------------------------+--------------------+----------------------+
| -   Timely de-stocking   | **Negative         | > Conditions for     |
|     involving immediate  | determination with | > restocking is that |
|     purchase and         | conditions** for   | > appropriate        |
|     slaughter of animals | restocking with    | > restocking breeds  |
|     and using it as food | improved breeds of | > shall be           |
|     assistance and for   | small ruminants    | > identified by the  |
|     use of the animals   | and protection of  | > relevant Ethiopian |
|     to commercial        | breeding stock by  | > government         |
|     markets (about       | supplying water    | > department and     |
|     30,000 to 100,000)   | and fodder per     | > research           |
|                          | 216.3(a)(2)(iii)   | > institutions to    |
| -   Restocking with      |                    | > ensure suitability |
|     improved breeds of   |                    | > and potential to   |
|     small ruminants and  |                    | > cause degradation  |
|     Protection of        |                    | > of environment. If |
|     breeding stock ,     |                    | > water supply is    |
|     e.g. supply of       |                    | > foreseen, then the |
|     water, fodder, etc   |                    | > implementing       |
|                          |                    | > partners shall be  |
|                          |                    | > required to screen |
|                          |                    | > the water supply   |
|                          |                    | > activity using the |
|                          |                    | > ESF/ERR            |
+--------------------------+--------------------+----------------------+
| **3.Early Warning and    |                    |                      |
| livestock response       |                    |                      |
| systems**                |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Afar region          | **Categorical      |                      |
|     baselines            | Exclusion** is     |                      |
|                          | recommended for    |                      |
| -   Overall livestock    | baseline           |                      |
|     early warning        | information and    |                      |
|     component for all    | livestock early    |                      |
|     pastoralists         | warning system for |                      |
|     (including LEWS)     | all pastoralists   |                      |
|                          | per 22 CFR 216.2   |                      |
|                          | (c)(2)(i)          |                      |
|                          | \[education,       |                      |
|                          | technical          |                      |
|                          | assistance,        |                      |
|                          | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
|                          | studies, workshops |                      |
|                          | and meetings\] and |                      |
|                          | (v) \[document and |                      |
|                          | information        |                      |
|                          | transfer\].        |                      |
+--------------------------+--------------------+----------------------+
| **3) Ethiopia sheep and  |                    |                      |
| goat productivity        |                    |                      |
| improvement program**    |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Strengthen the       | **Categorical      |                      |
|     human, academic and  | Exclusion** is     |                      |
|     institutional        | recommended for    |                      |
|     capacities of        | strengthening the  |                      |
|     Development Agent    | capacities for     |                      |
|     training programs,   | development agent, |                      |
|     including at         | provide satellite  |                      |
|     Technical,           | access to improve  |                      |
|     Vocational           | internet access,   |                      |
|     Education, and       | promoting sheep    |                      |
|     Training (TVET)      | and goat           |                      |
|     colleges.            | enterprise         |                      |
|                          | development        |                      |
| -   Increase             | including          |                      |
|     institutional        | fattening          |                      |
|     capacities in        | operations, links  |                      |
|     artificial           | to financing, and  |                      |
|     insemination,        | strengthening of   |                      |
|     multiple ovulation   | farmer and         |                      |
|     and embryo transfer  | pastoralist        |                      |
|     technologies so that | organizations,     |                      |
|     future importation   | increased          |                      |
|     of superior sires    | institutional      |                      |
|     will not be          | capacities in      |                      |
|     necessary.           | artificial         |                      |
|                          | insemination       |                      |
| -   Provide satellite    | multiple ovulation |                      |
|     access to improve    | and embryo         |                      |
|     internet             | transfer           |                      |
|     availability and     | technologies and   |                      |
|     voice over IP to     | providing support  |                      |
|     allow researchers to | for the national   |                      |
|     communicate with     | Animal Health      |                      |
|     others in global     | Research Center to |                      |
|     community who are    | address problems   |                      |
|     addressing similar   | related to excess  |                      |
|     problems of sheep    | mortality of small |                      |
|     and goat production, | ruminants and      |                      |
|     marketing,           | damage to hides    |                      |
|     consumption and      | due to pests per   |                      |
|     export of live       | 22 CFR 216.2       |                      |
|     animals and meat     | (c)(2)(i)          |                      |
|     products.            | \[education,       |                      |
|                          | technical          |                      |
|                          | assistance,        |                      |
|                          | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
|                          | studies, workshops |                      |
|                          | and meetings\] and |                      |
|                          | (v) \[document and |                      |
|                          | information        |                      |
|                          | transfer\].        |                      |
+--------------------------+--------------------+----------------------+
| -   Promote sheep and    | **Negative         | See the above        |
|     goat enterprise      | determination with | conditions for       |
|     development          | conditions** per   | choosing the         |
|     including fattening  | 216.3(a)(2)(iii)   | appropriate breeds.  |
|     operations, links to | for enhancing      |                      |
|     financing, and       | productivity and   |                      |
|     strengthening of     | economic returns   |                      |
|     farmer and           | of small ruminant  |                      |
|     pastoralist          | meat production by |                      |
|     organizations.       | cross breeding     |                      |
|                          | with superior      |                      |
| -   Introduce improved   | imported sires and |                      |
|     sheep and goat       | preserving and     |                      |
|     genetics (Awassi     | selecting          |                      |
|     sheep, Dorper sheep, | indigenous         |                      |
|     Boer goat) in order  | genotypes and      |                      |
|     to increase milk     | introduce improved |                      |
|     production, growth   | sheep and goat     |                      |
|     rate and muscling,   | genetics to        |                      |
|     and dressing         | improve milk       |                      |
|     percentage of local  | production, growth |                      |
|     sheep and goat       | rate and muscling  |                      |
|     populations.         | and dressing       |                      |
|                          | percentage of      |                      |
| -   Enhance productivity | local sheep and    |                      |
|     and economic returns | goat populations   |                      |
|     of small ruminant    |                    |                      |
|     meat production by   |                    |                      |
|     crossbreeding with   |                    |                      |
|     superior imported    |                    |                      |
|     sires, and           |                    |                      |
|     preserving and       |                    |                      |
|     selecting indigenous |                    |                      |
|     genotypes.           |                    |                      |
|                          |                    |                      |
| -   Provide support for  |                    |                      |
|     the National Animal  |                    |                      |
|     Health Research      |                    |                      |
|     Center to address    |                    |                      |
|     problems related to  |                    |                      |
|     excess mortality of  |                    |                      |
|     small ruminant and   |                    |                      |
|     damage to hides due  |                    |                      |
|     to pests.            |                    |                      |
+--------------------------+--------------------+----------------------+
| **4) Ethiopia Sanitary   |                    |                      |
| and Phytosanitary        |                    |                      |
| Standards and Livestock  |                    |                      |
| and Meat Marketing       |                    |                      |
| (SPS-LMM) Program**      |                    |                      |
+--------------------------+--------------------+----------------------+
| **Objective 1. Improve   |                    |                      |
| Capacity of National and |                    |                      |
| Regional Veterinary      |                    |                      |
| Office to Undertake SPS  |                    |                      |
| Activities in Support of |                    |                      |
| Increased Livestock and  |                    |                      |
| Meat Exports**           |                    |                      |
+--------------------------+--------------------+----------------------+
| **IR 1.1. Increase       |                    |                      |
| capacity building of the |                    |                      |
| animal health services   |                    |                      |
| to set and meet          |                    |                      |
| international standards  |                    |                      |
| through conducting risk  |                    |                      |
| assessments,             |                    |                      |
| verification,            |                    |                      |
| trace-back, and          |                    |                      |
| certification**          |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Provide an           | **Categorical      | Providing for        |
|     APHIS-type           | Exclusion** is     | certification, risk  |
|     veterinarian to      | recommended for    | assessment,          |
|     assist the animal    | technical          | verifiability and    |
|     health services and  | assistance         | similar capacity     |
|     implement the SPS    | (APHIS), training  | will also directly   |
|     capacity building    | to key personnel   | advance the          |
|     initiative           | in veterinary      | environmental        |
|                          | delivery system,   | quality objectives   |
| -   Provide short-term   | clarifying and     | this IEE seeks to    |
|     training to key      | improving          | promote.             |
|     personnel in         | coordination       |                      |
|     veterinary delivery  | between national   |                      |
|     systems (e.g. meat   | and regional       |                      |
|     inspectors)          | veterinary         |                      |
|                          | services,          |                      |
| -   Clarify and improve  | promoting          |                      |
|     the roles and        | organization and   |                      |
|     coordination between | participation of   |                      |
|     national and         | GOE in the         |                      |
|     regional veterinary  | regional livestock |                      |
|     services.            | industry and       |                      |
|                          | creating a forum   |                      |
| -   Promote the          | for private sector |                      |
|     organization and     | participation in   |                      |
|     participation of GOE | national animal    |                      |
|     and the livestock    | health policies    |                      |
|     industry in regional | and programs per   |                      |
|     (East Africa and     | 22 CFR 216.2       |                      |
|     Nile Basin           | (c)(2)(i)          |                      |
|     Countries) animal    | \[education,       |                      |
|     health programs to   | technical          |                      |
|     advocate for         | assistance,        |                      |
|     commodity based      | training\], (iii)  |                      |
|     approach and         | \[analyses,        |                      |
|     certification.       | studies, workshops |                      |
|                          | and meetings\] and |                      |
| -   Create the forum for | (v) \[document and |                      |
|     private sector       | information        |                      |
|     participation in     | transfer\].        |                      |
|     national animal      |                    |                      |
|     health policies and  |                    |                      |
|     programs             |                    |                      |
+--------------------------+--------------------+----------------------+
| **IR 1.2. Increase the   |                    |                      |
| capacity for the         |                    |                      |
| livestock and meat       |                    |                      |
| industry to comply with  |                    |                      |
| the standards of key     |                    |                      |
| importing countries**    |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Undertake research   | **Categorical      |                      |
|     on the health        | Exclusion** is     |                      |
|     regulations and      | recommended for    |                      |
|     standards in key     | policy analysis,   |                      |
|     importing countries. | dialogue and       |                      |
|                          | advocacy           |                      |
| -   Assist in            | mechanisms for the |                      |
|     development of       | financial sector   |                      |
|     bi-lateral trade     | per 22 CFR 216.2   |                      |
|     agreements for       | (c)(2)(i)          |                      |
|     livestock and meat   | \[education,       |                      |
|                          | technical          |                      |
|                          | assistance,        |                      |
|                          | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
|                          | studies, workshops |                      |
|                          | and meetings\] and |                      |
|                          | (v) \[document and |                      |
|                          | information        |                      |
|                          | transfer\].        |                      |
+--------------------------+--------------------+----------------------+
| **IR 1.3. Establish a    |                    |                      |
| verifiable and efficient |                    |                      |
| system for the           |                    |                      |
| inspection and           |                    |                      |
| certification of the     |                    |                      |
| livestock -- meat for    |                    |                      |
| exports**                |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Full cost recovery   | **Categorical      |                      |
|     for inspection and   | Exclusion** is     |                      |
|     certification        | recommended for    |                      |
|     services including   | cost recovery for  |                      |
|     vaccinations for     | inspection and     |                      |
|     export programs      | certification      |                      |
|                          | services including |                      |
| -   Establish a          | vaccinations for   |                      |
|     check-off fund for   | export programs    |                      |
|     emergency health     | policy analysis,   |                      |
|     actions necessary to | setting up a check |                      |
|     retain export        | off fund for       |                      |
|     markets              | emergency health   |                      |
|                          | actions,           |                      |
| -   Establish an animal  | establishing an    |                      |
|     health protocol for  | animal health      |                      |
|     the export of        | protocol for the   |                      |
|     livestock and meat   | export of          |                      |
|     recognized by        | livestock and meat |                      |
|     importing country    | and joint venture  |                      |
|     markets.             | for the production |                      |
|                          | of animal vaccines |                      |
| -   Joint venture for    | feasibility study  |                      |
|     the production of    | per 22 CFR 216.2   |                      |
|     animal vaccines      | (c)(2)(i)          |                      |
|     (conduct a           | \[education,       |                      |
|     feasibility)         | technical          |                      |
|                          | assistance,        |                      |
|                          | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
|                          | studies, workshops |                      |
|                          | and meetings\] and |                      |
|                          | (v) \[document and |                      |
|                          | information        |                      |
|                          | transfer\].        |                      |
+--------------------------+--------------------+----------------------+
| **Objective 2. Improve   |                    |                      |
| Ethiopia's               |                    |                      |
| competitiveness in the   |                    |                      |
| world market for         |                    |                      |
| livestock and meat**     |                    |                      |
+--------------------------+--------------------+----------------------+
| IR 2.1. Improvement in   |                    |                      |
| the operating efficiency |                    |                      |
| in exporting livestock   |                    |                      |
| and meat                 |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Improved market      | **Categorical      |                      |
|     integration by       | Exclusion** is     |                      |
|     creating and         | recommended for    |                      |
|     expanding direct     | improved market    |                      |
|     linkages between     | integration by     |                      |
|     producer marketing   | creating and       |                      |
|     groups and export    | expanding direct   |                      |
|     abattoirs.           | linkages between   |                      |
|                          | producer marketing |                      |
| ```{=html}               | groups and export  |                      |
| <!-- -->                 | abattoirs,         |                      |
| ```                      | marketing          |                      |
| -   Market information   | information and    |                      |
|     to better link       | establishing       |                      |
|     producers, traders,  | grades and         |                      |
|     abattoirs and        | standards based on |                      |
|     exporters to world   | market             |                      |
|     market conditions    | requirements in    |                      |
|                          | key importing      |                      |
| -   Establishment of     | countries per 22   |                      |
|     grades and standards | CFR 216.2          |                      |
|     based on market      | (c)(2)(i)          |                      |
|     requirements in key  | \[education,       |                      |
|     importing countries  | technical          |                      |
|                          | assistance,        |                      |
|                          | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
|                          | studies, workshops |                      |
|                          | and meetings\] and |                      |
|                          | (v) \[document and |                      |
|                          | information        |                      |
|                          | transfer\].        |                      |
+--------------------------+--------------------+----------------------+
| ######                   |                    |                      |
|  IR 2.2. Improve the mar |                    |                      |
| ket operations and infra |                    |                      |
| structure to reduce mark |                    |                      |
| eting costs in the expor |                    |                      |
| ts of livestock and meat |                    |                      |
+--------------------------+--------------------+----------------------+
| -   One stop shop" for   | **Categorical      |                      |
|     export documents and | Exclusion** is     |                      |
|     payments at the      | recommended for    |                      |
|     federal level.       | "one stop" shop    |                      |
|                          | for export         |                      |
| ```{=html}               | documents and      |                      |
| <!-- -->                 | payments at the    |                      |
| ```                      | federal level,     |                      |
| -   Improved procurement | improved           |                      |
|     system and           | procurement system |                      |
|     reconditioning of    | and reconditioning |                      |
|     animals (procuring,  | of animals,        |                      |
|     collecting,          | appropriate        |                      |
|     transport, and       | utilization of     |                      |
|     conditioning)        | market fees,       |                      |
|                          | introduction of    |                      |
| -   Appropriate          | improved meat      |                      |
|     utilization of       | technologies for   |                      |
|     market fees          | increased exports  |                      |
|                          | of chilled meat by |                      |
| -   Introduce improved   | land and sea       |                      |
|     meat technologies    | routes and         |                      |
|     for increased        | improving the      |                      |
|     exports of chilled   | competitiveness of |                      |
|     meat by land and sea | Ethiopian exports  |                      |
|     routes               | through cost       |                      |
|                          | effective          |                      |
| -   Improve the          | transportation     |                      |
|     competitiveness of   | system per 22 CFR  |                      |
|     Ethiopian exports    | 216.2 (c)(2)(i)    |                      |
|     through              | \[education,       |                      |
|     cost-effective       | technical          |                      |
|     transportation       | assistance,        |                      |
|     system               | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
|                          | studies, workshops |                      |
|                          | and meetings\] and |                      |
|                          | (v) \[document and |                      |
|                          | information        |                      |
|                          | transfer\].        |                      |
+--------------------------+--------------------+----------------------+
| **IR 2.3. Enhance the    |                    |                      |
| environment for exports  |                    |                      |
| of livestock and meat to |                    |                      |
| key targeted import      |                    |                      |
| markets**                |                    |                      |
+--------------------------+--------------------+----------------------+
| -   Promotion of         | **Categorical      |                      |
|     Ethiopian livestock  | Exclusion** is     |                      |
|     and meat (EMEA and   | recommended for    |                      |
|     GEM project)         | promotion of       |                      |
|                          | Ethiopia in        |                      |
| -   Policies that will   | livestock and      |                      |
|     improve the          | meat, and enacting |                      |
|     marketing of         | policies that will |                      |
|     livestock and meat   | improve the        |                      |
|                          | marketing of       |                      |
|                          | livestock and meat |                      |
|                          | per 22 CFR 216.2   |                      |
|                          | (c)(2)(i)          |                      |
|                          | \[education,       |                      |
|                          | technical          |                      |
|                          | assistance,        |                      |
|                          | training\], (iii)  |                      |
|                          | \[analyses,        |                      |
|                          | studies, workshops |                      |
|                          | and meetings\] and |                      |
|                          | (v) \[document and |                      |
|                          | information        |                      |
|                          | transfer\].        |                      |
+--------------------------+--------------------+----------------------+

4.2.1., cont'd.

EDDP should work with Commercial Service Providers (CSP) to train on
animal health practices. In terms of better practices, the program
should, within its area of operation, reduce plastic littering by
introduction of metal cans instead of plastics, and reducing use of
agrovet materials such as gloves and syringes. At the processor level,
it should promote environmentally sound practices such as proper waste
disposal and efficient use of energy.

Dairies should introduce appropriate pollution prevention,
process-efficiency enhancing practices, such as soak pits to deal with
waste water. With regard to energy-saving initiatives, EDDP could
promote milk processors to cut down energy costs, as has happened in
Kenya with the KDDP. Its role in this has been to link up the processors
with manufacturers of energy-saving pasteurization equipment.

#### 4.2.2 Famine Prevention Fund Pastoralist Livelihoods Initiative (FPF-PLI) Project

#### 1. Expanding new and traditional markets for live animals and animal products will involve:

-   Develop Market and trekking route infrastructure (including holding
    yards, watering points, clutches, overnight-stay holding grounds,
    auction and marketing yards, etc)

Environmental Screening Form (ESF)/Environmental Review Form (ERR) shall
be used to review the development of the anticipated small scale
trekking infrastructure including livestock water points, auction yards,
livestock holding grounds, etc, to identify potential environmental
impacts and apply appropriate mitigation measures. The Environmental
Guidelines for Small Scale Activities in Africa (EGSSAA)
[www.encapafrica.org/SmallScaleGuidelines.htm](http://www.encapafrica.org/SmallScaleGuidelines.htm)
contains relevant details on small scale infrastructural development.
Mission staff and implementing partners were trained on how to use the
above screening forms and guidelines in an Environmental Assessment and
Management workshop held in Sodere/Nazareth, Ethiopia, February 2005.
The form is attached as Annex 1, and can also be found at
[www.encapafrica.org](http://www.encapafrica.org/) .

**2. Stabilize and Adjust Herd Size to Pasture Conditions**

-   Restocking with improved breeds of small ruminants and Protection of
    breeding stock , e.g. supply of water, fodder, etc

Conditions for re-stocking is that appropriate restocking breeds shall
be identified by the relevant Ethiopian government agricultural and
livestock development departments as well as research institutions to
ensure suitability and potential to cause degradation of environment.
Some breeds may be suitable for certain environment eg. introducing
goats and other browsers may help combat bush encroached range areas. If
water supply is foreseen, then the implementing partners shall be
required to screen the water supply activity using the ESF/ERR (

4.2.3 Ethiopia sheep and goat improvement program

-   Enhancing productivity and economic returns of small ruminant meat
    production by crossbreeding with superior imported sires, and
    preserving and selecting indigenous genotypes.

See the conditions on restocking with improved breeds described above

Attached to this document as Annex 1.

**4.3 Environmental Responsibilities**

USAID/Ethiopia assumes responsibility for environmental screening,
review and decision-making for all USAID-assisted sub-grants as outlined
below:

-   Through the sub-grantees, and with the assistance of appropriate
    implementing partners, proposers will submit proposals that take
    into consideration potential environmental impacts and their
    mitigation, including avoidance, and will design the activities with
    an environmental monitoring system in place;

-   The proposer and the implementing partners will use the Screening
    Form to categorize proposals, and the MEO will review and pass on to
    the REO and BEO any Category 3 or 4 and, as he/she determines, any
    Category 2 activities for which further consultation is sought;

-   The proposer, with the assistance of implementing partners, as
    appropriate, will ensure implementation of agreed-upon mitigating
    measures and environmental impact monitoring;

-   The USAID Project Manager/Advisor will be ultimately responsible for
    monitoring environmental impacts of all project-financed sub-grants,
    as further specified below; and

-   Periodic visits of the REO or REA will also be requested for advice,
    refresher training and validation that environmental processes are
    in place.

**4.4 Monitoring, Evaluation and Mitigation**

An **environmental monitoring, evaluation and mitigation process** will
be established and used by the implementing partners in collaboration
with USAID. USAID-supported sub-grants shall incorporate appropriate
mitigation and monitoring procedures as listed below.

-   Proposers will be encouraged to utilize the *Environmental
    Guidelines for Small-Scale Activities in Africa* and other -specific
    information to assist them in determining what potential impacts
    should be of concern for different types of development activities
    in various settings;

-   The sub-grantee, with the assistance of appropriate implementing
    partners, must identify in each grant proposal all proposed
    environmental mitigation and monitoring requirements. The
    implementing agents will determine, based on the proposal, those
    impacts for which mitigation and monitoring are considered
    necessary;

-   The mitigative measures and monitoring procedures stated in the
    report shall be considered a requirement;

-   The sub-grantee, with assistance of the appropriate implementing
    partners shall be responsible for implementation of agreed-upon
    mitigation measures and monitoring of impacts;

-   All sub-grantees' periodic reports to the implementing agents and
    from them to USAID/ Ethiopia shall contain a section on
    environmental impacts, success or failure of mitigative measures
    being implemented, results of environmental monitoring, and any
    major modifications/revisions to the project, mitigative measures or
    monitoring procedures.

USAID/ Ethiopia is ultimately responsible for assuring conformity with
the procedures spelled out above, including environmental categorization
and review procedures. With particular respect to monitoring, evaluation
and mitigation, the Mission is responsible for:

-   Monitoring and evaluation of activities after implementation with
    respect to environmental effects that may need to be mitigated, a
    process which should be integrated into the overall SO or Mission
    Performance Monitoring Plan;

-   Evaluation of implementing agents\' and/or grantees\' reports with
    respect to results of environmental mitigation and monitoring
    procedures;

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-   Incorporating into Mission field visits and consultations with
    grantee periodic examination of the environmental impacts of
    activities and associated mitigation and monitoring (assistance of
    the REO or REA in preparing guidelines or assisting with the
    monitoring and evaluation can be solicited); and

-   Reporting on implementation of mitigation and monitoring
    requirements as part of the summary of activities and their status
    that is passed to the REO and BEO and which is to be summarized in
    the Mission\'s Annual Report.

[^1]: The original SO 16 IEE and ERR can be found in Word and PDF format
    at:
    [http://www3.afr-sd.org/iee/FMPro?-db=iee%5ftracker.fp3&-format=iee%5fdetail.htm&-sortfield=Date%5fApproved&-sortorder=descend&-op=eq&Country=Ethiopia&Fiscal%5fYear=FY04&-max=20&-recid=33297&-find](http://www3.afr-sd.org/iee/FMPro?-db=iee_tracker.fp3&-format=iee_detail.htm&-sortfield=Date_Approved&-sortorder=descend&-op=eq&Country=Ethiopia&Fiscal_Year=FY04&-max=20&-recid=33297&-find)=