Ministry of Agriculture of RA
THE PROJECT IS FINANCED BY THE EUROPEAN UNION AND AUSTRIAN DEVELOPMENT AGENCY
The Project is implemented by the UN Industrial Development Organization and UN Development Programme
ENPARD Technical Assistance:
Producer Group and Value Chain Development
UNIDO/UNDP Component:
Terms of Reference
Value Chain Consultant
General
Post Title: Value Chain Consultants
Starting Date: June, 2015
Duration of assignment: 3 months (with possibility of extension)
Project: ENPARD Technical Assistance: Producer Group and Value Chain Development
Project ID: 00091028
Location: Yerevan with travel to the regions
Introduction and Background
With funding from the European Union, the European Neighbourhood Programme for Agriculture
and Rural Development (ENPARD) supports the Government of Armenia in ensuring an efficient and
sustainable agriculture that contributes to better living conditions in rural areas. Within ENPARD
Armenia a technical assistance component focuses on producer group and value chain development.
This component is implemented by UNIDO and UNDP with funding from the EU (2.4 million euro)
and co-funding from the Austrian Government (1 million euro). In particular the project aims to
strengthen producer groups, effectively engage producer groups in value addition activities,
strengthen value chains that provide improved access to affordable, better quality food, contribute
to the development of rural areas and improve access to local and international markets, and ensure
the introduction of environmentally-friendly farming and food processing practices. Direct
beneficiaries of the project include agricultural producers, members of producer groups and their
employees, their families and SMEs along the value chains as well as Armenian consumers. The
project also will focus on women, youth, and other vulnerable groups.
The technical assistance component of ENPARD, implemented by UNIDO and UNDP, has three
primary outputs:
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Output 1: Strengthened and newly established primary producer groups. Within the
targeted value chains and marzes, the project will develop effective, sustainable new
producer groups as well as assist and strengthen existing ones in the various stages of their
development.
Output 2: Producer groups effectively engaged in value addition. The project will support
the building of physical infrastructure as well as human capacity and skills that enable
producers to add value to primary agricultural production.
Output 3: Strengthened value chains that provide improved access to affordable, better
quality food. The project will identify and develop key intervention points at any level within
the selected value chains that will benefit not only stakeholders of those value chains but
also Armenian consumers locally and nationally.
Purpose
This consultancy is situated within Output 3, described above, with the objective of producing a
comprehensive analysis of the selected value chains. The selected value chains include:
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High value field crops, with a focus on buckwheat and lentils;
Non-traditional and high-value vegetables;
Berries and fruits; and,
Dairy.
Two consultants will be hired, each of which will perform two value chain analyses in the three
month period. A potential breakdown of consultancy responsibilities may be as follows.
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Consultant 1: High value field crops and high value vegetables
Consultant 2: Berries and a focused sub-section of the overall fruit sector
The value chain report will provide the supporting analysis and information to enable the design of
the activities and interventions which will be undertaken in Output 3—to resolve value chain
constraints on the marz level, and to boost the earnings of farmer groups and value adding groups
engaged in the selected value chains.
Methodology
The consultant will apply UNIDO’s methodology for value chain analysis, available online.1 The final
written report is expected to conform entirely with the structure discussed in this methodology. In
general, the consultant’s work will include research and analysis, in the following phases:
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Desk research: Using existing documents and other information sources, the consultant will
undertake a literature review to filter basic information into the structure of the value chain
analysis described in UNIDO’s methodology.
Interviews with stakeholders: Specific information will be found through interviews with
experts in the public, private and civil society sectors.
http://www.unido.org/fileadmin/user_media/MDGs/IVC_Diagnostic_Tool.pdf
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Field interviews and focus groups: Focused discussions with farmers and other value chain
actors will provide the bulk of the insight to be included in the analysis.
Analysis and reporting: Using the information collected, the consultant will conduct a
comprehensive analysis, and present the analysis in the structure specified in UNIDO’s
methodology.
Expected Results
As described in detail in UNIDO’s diagnostic tool for value chains, the analysis will include:
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Value chain mapping, including a graphical representation of the value chain segments,
actors and supporting services;
Data on production, input supply, farm structure, agronomic issues, numbers of producers,
production costs, gross margins, and primary constraints to production;
Data on post-harvest issues relating to technology, storage capacities, transportation, postharvest loses, gross margins of transporters/traders and of warehouse operators if relevant,
and primary constraints;
Data on processing and value addition, relating to technology, processing capacities and
usage, knowledge and capacity of actors, gross margins of various processing units and for
the production of various products, and primary constraints;
End market characteristics, including key product characteristics demanded by various
markets, quality standards, market sizes for a variety of processed and fresh products,
wholesale and retail margins, and market and marketing constraints;
An analysis of the value chain governance, the lead firms, a characterization of the value
chain as suppler driven or market driven, and an analysis of value capture in the chain;
A review of key points impacting environmental sustainability and energy use in the value
chain, and recommendations of mitigation measures;
An analysis of the financial needs by segment and the degree to which these needs are
serviced by the existing financial actors, and the associated risk, a review of the formal and
informal sources of finance, and a brief sketch of potential financial mechanisms to
introduce;
A description of the overall business environment underlying the value chain, touching upon
access to finance, food related laws, business registration issues, the cultural context, the
relevance of agricultural research institutions and extension services, and other issues; and,
Recommendations for further action formulated as interventions to be undertaken by the
project or other actors (including the government and private and civil society
organizations); the recommendations will not be as a value chain upgrading/development
strategy, but would provide an initial outlie of such a strategy which could be developed
using the data and analysis provided in the overall value chain analysis.
The analysis will be provided as a written report in English language. A PowerPoint presentation may
be required to communicate specific elements of the analysis.
Reporting Arrangements
The consultant will report to the UNDP Component Leader, but receive technical direction from the
Project Coordinator and UNIDO Component Leader, as well as intermittently from the Project
Managers at UNIDO HQ in Vienna. During the period of work, the consultant will be an integral part
of the UNIDO/UNDP team, and will discuss progress and receive coaching on approximately a weekly
basis.
Timing
The consultancy will begin as soon as the consultant is selected and run for minimum of three
months.
Qualifications
To successfully perform these duties the candidate will possess:
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5 years of experience and demonstrated understanding in agricultural value chain
development, including the latest thinking and delivery models for agribusiness and
producer group development. Solid understanding of the socio-economic conditions of
agricultural producers and processors.
Strong analytical skills, including business planning and financial modeling.
Demonstrated donor-funded project experience, demonstrating detail orientation, proactive
attention to outcomes and expectations, and the ability to understand and effectively use
information.
Established networks among development agencies, private investors and consultants
involved in agribusiness and value chain development, agricultural marketing and producer
group development.
Previous experience in completing value chain analyses or feasibility studies for agribusiness
development.
Experience writing project reports in English.
High level of interpersonal skills; able to establish and maintain harmonious working
relationships with superiors, co-workers, clients and suppliers.
Education: Advanced university degree in business administration, marketing, and/or agricultural
economics.
Languages: Fluency in written and spoken English and Armenian.
Core values:
 Integrity
 Professionalism
 Respect for diversity
Core competencies:
 Results orientation and accountability
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Planning and organizing
Communication and trust
Team orientation
Client orientation
Organizational development and innovation