Terms of Reference (ToR) for Detail Value Chain Analysis and Baseline Assessments of Timur, Off-seasonal Vegetables, Turmeric and Meat Products" A. Terms of Reference (ToR) for “Value Chain Analysis of Timur, Off-seasonal Vegetables, Turmeric and Meat Products 1. General Background: Mid and Far Western Development Region of Nepal is characterised by widespread poverty, low human development index and overall deprivation due to poor access to infrastructure and services, and isolation from markets, exacerbated by the conflict and economic exclusion linked to gender, ethnicity, and caste. Government of Nepal has given priority to develop economic opportunities for poor and disadvantaged farmers and producers of these areas. Further, there is a need to support private sector development within public/private partnerships and also to reduce gender, ethnic and caste-related disparities through greater inclusion of disadvantaged groups in development. The improved accessibility by the opening up of three north-south road corridors (Chhinchu-Jajarkot; Surkhet-Dailekh; Surkhet-Kalikot-Jumla) in this region hold potential in changing the dynamics for producers in the area and for growing/collecting surpluses including access to market that were previously either unavailable or too costly to access or characterised by lack of interested buyers. Several studies have demonstrated the potential to develop specific pro-poor value chains with the opening up of these roads, including a comprehensive study by SNV Netherlands Development Organisation & Department of Agriculture (DoA) 1 which demonstrated some 18 high value agriculture crops and non timber forest products/medicinal and aromatic plants (NTFPs/MAPs) that show considerable potential to address the region's widespread poverty through the process of socioeconomic reunification. Thus, it is necessary to build stronger connectivity between farmers, input suppliers, traders/agrobusinesses and downstream markets to increase agricultural diversification, productivity and income through initiatives focused on high-value crops, NTFPs/MAPs and livestock facilitating economic growth. This requires the selection of appropriate pro-poor value chain analysis and market systems for high-value commodities and their development through improved access to research and extension services, financial services, input supplies and market information, as well as through improved infrastructure. Experience in the past has shown some success to support the integration of farmers in value chains. SNV has been one of the most active agencies in this field, particularly in the MidWestern Development Region. SNV’s experiences including the lessons learned from the International Fund for Agricultural Development (IFAD)-financed projects have laid the foundation for the implementation of HVAP. High Value Agriculture Project in Hill and Mountain Areas (HVAP) is a joint initiation of Government of Nepal/Ministry of Agriculture and Cooperatives (MoAC) and IFAD for reduction of poverty and vulnerability of women and men in Mid-Western Development Region. The project duration is of six years starting from July 2010. MoAC is overall responsible for implementation of the project in partnership with SNV and Agro Enterprises Centre (AEC/FNCCI). District government line agencies including national and local NGOs contracted under MoAC/Project Management Unit (PMU) is responsible for implementation of field level activities. The project covers ten districts: Achham, Dailekh, Jajarkot, Jumla, Kalikot, Salyan, Surkhet, Dolpa, Mugu and Humla of Far Western and Mid-Western Development Regions served by three north -south corridors: Chhinchu-Jajarkot, Surkhet-Dailekh and Surkhet-Jumla roads. 1 SNV & DoA. 2009: High Value Agriculture Commodities and NTFPs in Western Nepal: Assessment of Value Chains in the Surkhet- Dailekh, Surkhet- Jajarkot and Surkhet-Jumla Road Corridor Districts. 1 The project aims to integrate rural poor especially women and marginal groups in high value agriculture and NTFP/MAPs value chains and markets and for improved income, employment opportunities and ability to respond to market demand and opportunities based on marketing agreements with private agribusiness. To fulfil the objectives, HVAP focuses on one dominant intervention – the development of pro-poor value chains. Component 1 facilitates this development, with Component 2 providing initiatives directly in support of value chain development: formation/strengthening value chain producers groups, initiatives to promote gender and social inclusion, support for high value commodity production and post-harvest activities, establishment of a grant-based value chain development fund, and support for district operations and inclusion of remote communities. Component 3 provides for project management and linked activities including M & E and knowledge management. The project follows Inclusive Business and Value Chain Development approach in the geographic boundaries demarcated by accessibility to roads rather than the existing political boundaries. The demand driven nature of the project demands the project to engage with agribusiness companies to integrate poor producers in their supply chain. SNV Netherlands Development Organisation is an international development organisation, providing advisory services for capacity strengthening of the local organisations working in various developing countries including Nepal. As an implementing partner and a TA provider, SNV holds overall responsibility for implementation of component 1 Pro poor value chain development with AEC that includes value chain baseline studies, value chain analysis, B2B facilitation, agribusiness engagement, agribusiness/producer contract facilitation, and publications & workshops in inclusive business approach, a relatively new but proven approach to value chain development that SNV has been implementing in a number of countries. Besides, SNV will support for coordination of activities in component 2 and for knowledge management, part of Component 3. As per SNV Corporate Strategy (2007-2015), SNV has made a strong commitment to engage Local Capacity Builders (LCBs) in all sectors. The purpose of LCB engagement is to respond to the scale and complexities of development challenges with the innovation, increased coverage and more sustainable local capacity of LCBs which can replace SNV’s direct services more efficiently and effectively. Following the value chains as per project design, the project revised and prioritised 20 value chains potential within the HVAP intervention area using a defined set of criteria firstly through VC prioritisation workshop and secondly through regional/national level agribusiness opportunity workshop involving multi-stakeholders in collaborative approach. Keeping in view of HVAP’s engagement, SNV conducted detail value chain analyses of apple, vegetable seed and ginger. Now, HVAP is about to undertake similar studies for timur, goat meat, turmeric and off season vegetables. 2. Objective of the task The main objective of this assignment is to provide sufficient understanding on the current status and future potential of the four value chains (Timur, meat (goat in particular), turmeric and off-season vegetables (tomatoes, green bean/pea pod, cauliflower and cabbage) and to identify specific bottlenecks and opportunities that can be addressed through the project intervention thereby increasing production, income and employment of rural poor. The specific objectives are as follows: Value chain map that depicts the chain actors and their functions & inter relationship. Identify major production pockets, growth potential, market trends & competitiveness of selected value chains (supply and demand) including its future prospects within the country and abroad. Identify and examine constraints and opportunities within the selected value chains and recommend interventions to overcome constraints and make use of opportunities to promote inclusive & sustainable pro poor economic growth and competitiveness. Analyse dynamics of processing and value creation, reward distribution, value chain governance and power relation structures and knowledge transfer. 2 Identify the underlying policy, institutional, and infrastructural issues that affect the competitiveness of the selected value chains with reference to the role of government and private sector in the regions of focus. Also develop a matrix indicating areas of priorities for which public sector can intervene and areas for the private sector support. Identify institution and organisation working for selected value chains from national to local levels (local, regional, national organisations from GO, NGO and private sector) that can contribute to pro poor value chain development.- Analyse gender and social inclusion/pro poor perspective at all steps of value chain mapping that enquire about the relative proportions of women & men, caste/ethnic communities at each nodes and between node. 3. Expected Outcome of the work The consultant will furnish a comprehensive value chain analysis report having disaggregated data including following, but not necessarily limited to: Detailed analysis of selected value chain with quantitative & qualitative description and the multiplier effect on incremental values at each level of the chain. Value chain mapping of actors, process stages, monetary flows, governance and power structures, information and knowledge flows from input, production, processing to consumption level. Economic analysis, production and market costs and revenues, value additions and profit margin along the chain including income and employment. Production pockets area and major market centres identification, growth potential, market trends (supply and demand) including cross-border trade (export and import) and competitiveness of selected value chain. Identify constraints and opportunities at each stages of value chain and leverage points. Recommend areas of interventions to improve the value of products including capacity building requirements for pro poor value chain development. Enabling environment (policy/incentives and its implication) with suitable policy advice for project implementation and VC supporting/facilitating organisations & institutions at local /regional/national level (CBOs, cooperatives, GO, NGOs and private sector) and their roles. List of potential agribusiness interested to collaborate with the project through contractual arrangements and their contact details including useful policy advice for their involvement at any level of the value chain. List of stakeholders consulted and list of References (studies and other literature used) as Annexes 4. Deliverables The service provider is expected to deliver the following listed deliverables: Inception report (digital copy) of the assignment. Draft report and Final report incorporating the comments (digital and 5 hard copies) of each value chains. (Off-season vegetables and three commodities in particular as cauliflower & cabbage, tomatoes and green beans/pea pod must be discussed separately). Digital and hard copy of the data collected and analysed, model, diagrams including photographs & contact list of interviewees and workshop participants and key traders. Financial report signed by the person authorised at the time of subsequent instalments and final payments. 3 Other relevant documents procured under this contract using SNV fund. 5. Study methodology The study comprises literature review and qualitative as well as quantitative research method. Checklist as key informant interview, Focus Group Discussion (FGD), Participatory Rural Appraisal (PRA), observation and so on will be used to gather information at each level of value chain. Primary information and secondary data analysis is equally important. Participatory tools, techniques and methodologies will be applied in information gathering and verification of the available information. The technical proposal will include following methodology in detail: Literature review and review of secondary information Develop survey instrument and conduct survey assessment Required number of focused group discussions and interviews with key informants/VC actor. Participatory field observations, interviews and consultations at the major market points including producers, traders and relevant stakeholders to collect required information. Analyse government policy and regulatory frameworks related to specific value chain development and private sector participation. Agribusiness mapping especially their current status in corporate social responsibility, trade volume and sales. Roles and responsibilities of each team members including number and person-days of the enumerators with their roles and responsibilities. Methods and tools not necessarily limited to can be used on mutual agreement prior to commencing study. Facilitate regional level stakeholder consultation workshops and national validation workshops to share the findings of the study and incorporate feedback and finalise the report. Invitations and other logistics will be done by SNV. 6. LCB Team composition and Requirement: The study team for conducting both detailed value chain analysis and value chain baseline studies of four above mentioned value chains should comprise the following expert members: Agricultural Expert and Team Leader: Minimum Master’s Degree in Agriculture preferably horticulture with ten or more years of experience in conducting study on agribusiness processing with a focus on production and marketing of High Value Agriculture Products from a perspective of value chain development (VCD). S/He should have proven experience of value chain, sub sector analysis, good understanding of private sector and trade policies including market dynamics so as to make the study sufficiently private sector oriented. S/he should have either led or carried out value chain analysis/baseline and evaluation/impact study and experienced in team leadership and coordination. NTFPs Expert: Minimum Master’s Degree in Forestry or Botany and seven or more years of experience in conducting such studies in forestry sector with a focus on production and marketing of NTFPs from a perspective of value chain development. S/He should have proven experience of value chain, sub sector analysis, good understanding of forest policies including market dynamics. Livestock Expert: Master’s Degree in Animal/Livestock Science and seven or more years of experience in conducting such studies in livestock & processing sector with a focus on production and marketing of meat products from a perspective of VCD. S/he should have sound knowledge on agricultural policies and market dynamics. Gender and Social Inclusion Expert: Master’s Degree in Sociology/Anthropology or relevant field with minimum 5 years of work experience on social research preferably gender equity and social inclusion issues in agriculture & forestry sectors. Knowledge on agriculture policies, value 4 chain and market dynamics and experience of demographic situation, gender and social inclusion of the region will be an asset. Data Analyst/Statistician: Master’s Degree in Statistics, MBA or relevant field, with minimum 7 years of work experience in undertaking baseline studies including research survey, development of monitoring frameworks, impact assessments & evaluations. Experience of demographic and socio economic situation of the region will be an advantage. The Field Enumerators/assistants to be managed locally as per need should have field experiences on doing socio-economic research, fluent in local languages and familiar with concept and application of participatory tools and techniques. The inputs (person per days) of each of the above mentioned experts including the enumerators should be proposed by the service provider based on the methodology proposed. 7. Activity and Time Planning/frame Detail proposal along with the details on methodology, activities, budget, time frame, CVs of experts, organisational profile (if submitted by an organisation or company) need to be submitted to the following address no later than mentioned date during time of public announcement. 8. Reporting 2 LCB will report to the SNV Programme Coordinator (PIE) 2/Programme Manager, HVAP through the Lead Advisor. LCB is responsible for time writing as per SNV requirements and such time sheet shall be reported to PC through Lead Advisor no later than 5th day of the next month. Field progress report should be communicated in every 10 days of work orally or in written form to the Lead Advisor. LCB should submit draft report first and by incorporating all comments should submit final report to PC through Lead Advisor. Length of the full report shall not exceed 60 pages including Annexes. The report shall have an executive summary of not more than 6 pages and shall in full not exceed 40 pages (without annexes). The Annexes should not exceed 20 pages. Production, Income and Employment-SNV's one of the two impact area 5 B. Terms of Reference (ToR) for “Value Chain Baseline Assessment of Off-season Vegetables, Meat Products, Turmeric and Timur" 1. General Background: Mid and Far Western Development Region of Nepal is characterised by widespread poverty, low human development index and overall deprivation due to poor access to infrastructure and services, and isolation from markets, exacerbated by the conflict and economic exclusion linked to gender, ethnicity, and caste. Government of Nepal has given priority to develop economic opportunities for poor and disadvantaged farmers and producers of these areas. Further, there is a need to support private sector development within public/private partnerships and also to reduce gender, ethnic and caste-related disparities through greater inclusion of disadvantaged groups in development. The improved accessibility by the opening up of three north-south road corridors (Chhinchu-Jajarkot; Surkhet-Dailekh; Surkhet-Kalikot-Jumla) in this region hold potential in changing the dynamics for producers in the area and for growing/collecting surpluses including access to market that were previously either unavailable or too costly to access or characterised by lack of interested buyers. Several studies have demonstrated the potential to develop specific pro-poor value chains with the opening up of these roads, including a comprehensive study by SNV Netherland Development Organisation & Department of Agriculture (DoA) 3 which demonstrated some 18 high value agriculture crops and Non timber forest products / medicinal and aromatic plants (NTFPs/MAPs) that show considerable potential to address the region's widespread poverty through the process of socioeconomic reunification. Thus, it is necessary to build stronger connectivity between farmers, input suppliers, traders/agrobusinesses and downstream markets to increase agricultural diversification, productivity and income through initiatives focused on high-value crops, NTFPs/MAPs and livestock facilitating economic growth. This requires the selection of appropriate pro-poor value chain analysis and market systems for high-value commodities and their development through improved access to research and extension services, financial services, input supplies and market information, as well as through improved infrastructure. Experience in the past has shown some success to support the integration of farmers in value chains. SNV has been one of the most active agencies in this field, particularly in the MidWestern Development Region. SNV’s experiences including the lessons learned from the International Fund for Agriculture Development (IFAD)-financed projects have laid the foundation for the implementation of HVAP. High Value Agriculture project in Hill and Mountain Areas (HVAP) is a joint initiation of Government of Nepal / Ministry of Agriculture and Cooperatives (MoAC) and IFAD for reduction of poverty and vulnerability of women and men in Mid-Western Development Region. The project duration is of six years starting from July, 2010 . MoAC is overall responsible for implementation of the project in partnership with SNV and Agro enterprises centre (AEC /FNCCI). District government line agencies including National and Local NGOs contracted under MoAC / Project Management Unit (PMU) is responsible for implementation of field level activities. The project covers ten districts: Achham, Dailekh, Jajarkot, Jumla, Kalikot, Salyan, Surkhet, Dolpa, Mugu and Humla of Far Western and Mid-Western Development Regions served by three north -south corridors: Chhinchu-Jajarkot, Surkhet-Dailekh and Surkhet-Jumla roads. The project aims to integrate rural poor especially women and marginal groups in high value agriculture and NTFP /MAPs value chains and markets and for improved income, employment opportunities and ability to respond to market demand and opportunities based on marketing agreements with private agribusiness. To fulfil the objectives, HVAP focuses on one dominant intervention – the development of pro-poor value chains. Component 1 facilitates this development, with Component 2 providing initiatives directly 3 SNV & DoA. 2009: High Value Agriculture commodities and NTFPs in Western Nepal: Assessment of Value Chains in the Surkhet- Dailekh, Surkhet- Jajarkot and Surkhet-Jumla Road Corridor Districts. 6 in support of value chain development: formation/strengthening value chain producers groups, initiatives to promote gender and social inclusion, support for high value commodity production and post-harvest activities, establishment of a grant-based value chain development fund, and support for district operations and inclusion of remote communities. Component 3 provides for project management and linked activities including M & E and knowledge management. The project follows Inclusive Business and Value Chain Development approach in the geographic boundries demarcated by accessibility to roads rather than the existing political boundries. The demand driven nature of the project demands the project to engage with agribusiness companies to integrate poor producers in their supply chain. SNV Netherlands Development Organisation-an international development organisation that provides advisory services for capacity strengthening of the local organisations working in various developing countries including Nepal is providing technical assistance to HVAP. As an implementing partner and a TA provider, SNV is responsible for the implementation of component 1 Pro poor value chain development with AEC. Besides, SNV will support for coordination of activities in component 2 and for knowledge management, part of Component 3. SNV has made a strong commitment to engage Local Capacity Builders (LCBs) in all sectors as per SNV Corporate Strategy (2007-2015). The purpose of LCB engagement is to respond to the scale and complexities of development challenges with the innovation, increased coverage and more sustainable local capacity of LCBs which can replace SNV’s direct services more efficiently and effectively. Keeping in view of HVAP’s engagement, SNV conducted detail value chain analyses of apple, vegetable seed and ginger. Now, HVAP is about to undertake similar studies for timur, goat meat, turmeric and off season vegetables. The VCAs will identify key constraints and opportunities and recommended key action points to overcome those constraints and leverage the opportunities to promote the selected value chains for inclusive & sustainable pro poor economic growth. Prior implementation, it is deemed essential to establish baselines of those value chains on VC actors, potential target groups, production pockets, socio-economic and poverty / gender / socially and economically marginalised group mapping within the project intervention area along the road corridors. Accordingly, HVAP has planned to undertake baseline studies of above mentioned 4 value chains, the results of which will serve as bench mark for monitoring and evaluating project outcomes in specific value chain at different levels. Moreover, information obtained from the baseline will be useful for project planning and ultimately help in fostering pro poor value chain development. 2. Objective The major objective of the assignment is to establish baseline for the four selected value chains. The study is expected to provide sufficient quantitative and qualitative details on the current production, processing, marketing and actors involved in all stages of the value chains. The specific objectives of the survey include: Development and administration of baseline instrument: Develop a survey instrument and collect baseline information at each node of the value chains so as to enable the project to measure progress, outcomes and impacts. Quantify the VC actors and service providers in particular producers (small and large), middlemen, processor, and traders (and their associations/ organisations if any). Quantify production volume, productivity, sales volume, added value, gross margin, actual benefits and income generated at different levels of value chain. Generate data on infrastructure facilitating production and marketing (irrigation, gravity rope way, rural roads, culvert, market shed, collection centre including distance of nearest market / collection centre etc.) VC impacts: Contribution of the value chains in household income, jobs creation, and other social, economic, and environmental impacts of the value chains. Power Analysis: Power analysis with the value chains to understand forms and causes of exclusion at different levels of the value chains. Power analysis should be carried at least at 7 following levels: Traders and farmers; Land owners and tenant farmers and Farmers and seasonal labours. Market trend and dynamics: volume of transactions at major market hubs like Nepalgunj, Kathmandu, Butwal, Kailali etc. Current value additions and product diversification possibilities. Flow of market information, access to information etc. Access to finance, inputs, extension service and market including distance. Comparative advantages, constraints and opportunities at each level of value chain including loss in production, post-harvest loss, existing farming, harvesting and management technology and varieties / breed. Generate relevant statistics on demographic and socio-economic features (education, health status, production, employment, income, expenses, source of income, food sufficiency and physical & social asset: membership to social groupings/networks) of targeted beneficiaries (gender disaggregated) related to specific value chain the project intervention areas. Gender disaggregation of VC actors and extent of inclusion of socially and economically excluded groups in all steps of value chains. Identify the needs and interests of women and excluded groups at different levels and their access to services offered by public and private service providers. 3. Expected Output: The consultants are expected to produce a comprehensive baseline study report with in-depth description of the target group having gender disaggregated data to measure effectiveness of the project/ intervention but not necessarily limited to: Baseline survey instrument questionnaires and checklists developed with required sampling size. Required information as mentioned above collected, analysed and inferences drawn. Monitoring and evaluation indicators that will be used to measure the effectiveness of the project intervention. Presentation of the results of the baseline study for validation during the consultation workshop. An overview of the key stakeholders at all level of value chain and detail list of VC actors / institutions consulted and list of References (studies and other literature used) as Annexes. 4. Deliverables The service provider is expected to deliver a comprehensive and high quality baseline report meeting but not limiting to above mentioned objectives: Inception report (digital copy) of the assignment. Draft report and Final report incorporating the comments with major findings in the main text and data and other supporting information in the annexes (digital and 5 hardcopies of each value chains). Digital and hardcopy of the data collected and analysed, model, diagrams including Photographs & contact list of interviewees and workshop participants. Financial report signed by the person authorised at the time of subsequent instalments and final payments. Other relevant documents procured under this contract using SNV/HVAP fund. 5. Study Methodology The study will use both quantitative and qualitative research methods for assessing the base line information on selected value chain and finalize the survey tools in consultation with HVAP team. Participatory tools, techniques and methodologies will be used in data collection and its verification. 8 Study methodology must cover all the production pocket / resource potential areas of each selected value chain within the project areas. The technical proposal should include the following methodology in detail: Desk study and secondary information collection to determine primary data requirement. Baseline methodology and survey design with representative sample size in detail including sampling plan of project target beneficiaries within each value chain to ensure that the information collected following the design is sufficient enough to measure the outcome and impact of the project intervention / progress. Nature and types of data collection instruments and tools used in the survey along the value chain. (For eg. No. of employees, production capacity, sector of work, gender, participation in associations, access to production factors, business challenges etc) Required number of structured interview, Focus group discussion (FGD), consultation and problem analysis meeting/work shop within value chain actors and representatives from N/GOs and support/facilitation organizations. Roles and responsibilities of each team members including number and person-days of the enumerators with their roles and responsibilities and work plan for undertaking the survey. Develop a monitoring and evaluation framework / indicators that demonstrate outcome & impact as of project interventions. Distance from the road can be indicative guidelines for selection of the survey site as in project design document: (i) up to 3 hours walk for fresh vegetables and other perishables (ii) up to 6 hours walk for fruits, spices and (iii) up to 1 day walk for non-perishables like NTFPs, seeds, Meat, processed products etc. The Baseline study of four value chains will be undertaken together with the value chain analysis of the same four VCs. Thus, the LCB team composition, Activity and Time Planning /frame, reporting, Budget, requested from consultants and consultancy firms and Conditions of the Contract will be as mentioned in ToR for Value Chain Analysis. Budget Budget should cover all costs including travel besides those related to the validation workshop (hall, food & projector) which will be borne directly by SNV /HVAP. If the applicant is a firm or a company VAT certificate is the most. Tax will be applied as per the GoN rules. Mode of payment: payments will be made in the following scheme • 40% of the agreed budget as an advance upon signing of the agreement • 40 % of the agreed amount one week after the submission of the 1st draft report. • Remaining 20 % after satisfactory quality check by SNV/HVAP after submitting the final report after incorporating the feedback and comments after 2 weeks of receiving the feedback. Requested from consultants and consultancy firms • Submit a technical and financial proposal (Max 6 pages main text) • Detailed CVs of the team members including a statement of availability duly signed by the consultant. • One page organisational profile including VAT/PAN registration certificate and tax clearance certificate. • Detailed budget cost of experts including travel overheads and logistical expenses for organising different level of stakeholder meetings, workshops etc. 9 Conditions of the Contract This ToR is guided by the SNV Nepal’s General Terms and Conditions Governing Contracts with local capacity builders (LCB Contract). The proposed consultant for undertaking assignment could not be changed during the study period without prior concern with SNV/HVAP. Based on the ToR, consultancy firms or local capacity builders are requested to submit their financial and technical proposals with detailed CVs and budget, latest by 17:00 Hours, Wednesday 31 August 2011, either in hard or in soft copy (mentioning the vacancy code on subject line), to the following addresses along with copies of latest tax clearance, registration certificate and one page organisational profile. SNV NEPAL P.O.Box: 1966 Kathmandu Nepal nepal@snvworld.org or HVAP/ Project Management Unit Birendranagar Municipality Ward no. 8 Itaram, Surkhet 10