Terms of Reference
For
A Study On Existing Sub-Sector Analyses Of
Bananas, Maize, Cotton, Beans, Rice,
Potatoes And Soya Bean
For
Trias Uganda
October 2011
Trias Uganda
Kiwafu Estate Road
Kansanga
Kampala (Uganda)
www.triasngo.be
triasuganda@triasngo.be
T 00256 414 266 371
Mob 00256 782 754 224
Introduction
The purpose of this Terms of Reference (ToR) is to elaborate the details of an assignment
to study the available sub-sector and value chain analyses in Uganda for upland rice,
maize, soya bean, beans, cotton, bananas (matoke) and Irish potatoes. It is meant to
enable the consultant to carry out the assignment properly.
It provides brief background information on Trias and its programs and partners in
Uganda and the context in which this assignment takes place and the scope, objectives,
expected outputs and methodology of the assignment.
Background
Trias and Its Strategy
Trias is a Belgian Non-governmental development organisation that focuses on the
increase of livelihood security of small scale farmers and entrepreneurs. In Belgium Trias
is linked to the Belgian Farmers’ Association and Small and Medium Entrepreneurs
associations. In the South, Trias works in 12 countries in Asia, Latin America and Africa.
Trias works through partner organisations to which it provides financial, technical and
advisory support. This happens through donor sponsored programmes which are
implemented by the partner organisations.
In Uganda, Trias is currently implementing 2 programmes in the Districts of Mbarara,
Hoima, Bulisa, Kiryandongo and Masindi. The programmes were launched in 2008, and
cover 4 districts and 7 partners - 3 district farmers’ organisation and 4 micro-finance
partners:



Hoima District with partners: Hoima District Farmers’ Association (Hodfa) and
Hoima, Fort Portal, Kasese Micro Finance (Hofokam1).
Mbarara District with partners: Mbarara District Farmers’ Association (Mbadifa),
Ebirungi Biruga Omututu SACCO Ltd (EBO) and Mwizi SACCO.
Masindi/Kiryandongo and Bulisa Districts with partners: Masindi District Farmers’
Association (Madfa), Hofokam and Masindi Farmers’ Cooperative Savings and
Credit Society (Madfa Sacco).
The outlook and scope of these three programmes are alike:


They have similar objectives: to raise the food- and income security of
smallholder farm households in a sustainable way.
They also advocate similar approaches and strategies: (a) development of
remunerative agricultural based micro-enterprises; (b) enhancing food security;
(c) providing “farmer friendly” savings and loan services; and (d) organisational
strengthening of partner organisations.
Under approach (a) above, Trias choose to use a methodology that fits within the Trias
principles whereby the target group is responsible for its own change: Participatory
1
Focus is on the Hoima Branch of Hofokam
Trias Terms of Reference for Sub-sector Analyses
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Agro-Enterprise Development (PAED). Annex 1 gives more details of the Approach and
the various training steps.
Participatory Sub-sector Analyses
Trias’ main task is to guide and built the capacity of its partner organisations to enable
them to carry out the programmes adequately and in a sustainable way. Annex 1 shows
that the PAED approach is basically a training programme whereby farmers are taken
through various steps. The trainings are carried out by the field staff of the farmers’
associations.
One of the steps in the PAED approach is Participatory Market chain (or Sub-sector)
analysis (PMCA): farmers themselves (under strong guidance from the DFAs) analyse the
constraints and opportunities in the market chain of the selected enterprise. This includes
a validation meeting with all actors and stakeholders in the chain. Analyses were done on
rice, maize (grain and seed), bananas (matoke), beans, Irish potatoes, cotton, sorghum
and soya beans.
This process is an excellent way to make farmers familiar with other chain actors and to
increase their self-confidence when doing research. But it also has its limitations: the
research is not comprehensive and scientific enough to reveal all critical constraints and
opportunities in the value chains, so maybe some crucial issues are left out.
On the other hand, there are many service providers who already did some excellent and
comprehensive value chain and sub-sector analyses. The opportunities and constraints
identified should be used to inform farmers and other value chain actors to further
improve the value chains. Trias is planning to do this by guiding its partner organisations
to set up commodity specific multi-stakeholders platforms where the identified
opportunities and constraints will form the bases to agree on actions for improvement.
The Assignment
Scope of the Assignment and Duration
The consultant is assigned to collect conclusions, recommendations and other relevant
information of the most relevant sub-sector/value chain analyses done in Uganda on:
1.
2.
3.
4.
5.
Upland rice (seed and grain)
Maize (seed and grain)
Soya bean (seed and grain)
Beans
Cotton
(1-5: preferably but not restricted to Bunyoro Region)
6. Bananas (matoke)
7. Irish potatoes
(6-7: preferably but not restricted to Ankole Region)
This assignment should be concluded before 15 December 2011.
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Objectives
Trias Uganda has a deeper understanding of:
 The various sub-sector/value chain analyses on the above mentioned commodities
conducted by any service provider, research institution or any other stakeholder in
Uganda with emphasis on, but not restricted to, Western Uganda.
 The conclusions and recommendations from these analyses particularly in relation
to:
o Lessons learnt: what are the success and failure factors to make value
chains work well?
o Opportunities and proposed solutions to improve the development of the
value chains
o Constraints that hinder the development of the value chains
o Profits generated along the chain and ways to increase these profits
o The needs of the various actors along the chain (financial, skills, access to
technologies, services,...) and how service providers (value chain
supporters) meet these needs.
o Quality standards
 The various actors, transactions, functions, activities, commodity flows and
transformations within the above mentioned sub-sectors as extracted from the
analyses.
Expected Outputs


Copies of the full sub-sector/value chain analyses reports made by various
stakeholders (soft copy only, if available)
Per commodity/sub-sector: a detailed report including:
◦ A list of sub-sector/value chain analyses done in Uganda in relation to the
above mentioned commodities (title of analyses, location, date, executer of
the analyses, commissioning organisation)
◦ Sub sector/value chain maps of the above mentioned commodities extracted
from the information in the collected reports
◦ A summary of methodologies, findings, conclusions and recommendations of
the various analyses in relation to the issues mentioned under objectives
All the above need to be provided in soft and hard copy unless mentioned otherwise.
Methodology
The assignment will be completed using following methods:


Internet search and literature study
Phone-calls and/or visits to various service providers, consultants, research
institutions and any other stakeholders who could be helpful to provide
information for the assignment.
Obligations of Trias and Consultant
Trias is responsible for the proper communication to the consultant on the contents of
this assignment. Trias can also assist the consultant in getting access to reports of third
parties if such assistance would be deemed necessary (e.g. through writing a letter).
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The consultant is responsible for the execution of this assignment and all logistical
arrangements and costs that are related to this assignment (travel, communication,
internet access costs, printing, copying, stationery,...)
Submission of Proposals
Trias invites proposals from individuals with the experience and skills required to
successfully complete the assignment. Proposals should include:
1.
2.
3.
A cover letter clearly stating the consultants capability to complete the activity
2-3 pages proposal indicating;
a.
Consultant’s understanding of the ToR and expected deliverables,
b.
Previous experience conducting similar or related activity,
c.
Proposed work plan for completing the activity,
d.
Professional fees, and
e.
2 referees for which similar work has been completed
CV indicating the consultants experience, knowledge and skills
Submit proposals by email to: peter.van.erum@triasngo.be before 5.00 PM Friday, 11th
November, 2011. Indicate in the subject line: Trias VCA proposal.
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ANNEX 1
The Participatory Agro-Enterprise
Development Approach
To Strengthen Smallholder Farmers’
Capacity
To Access Markets
The PAED Approach
This approach was developed and first piloted in Uganda by Africare and CIAT
(International Centre for Tropical Agriculture) in October 2003 with some farmers’
communities in Kabale district. One of them is the famous Nyabyumba United Farmers
Association who managed to obtain a long term trade relationship to deliver
11.28MT/month of ware quality potatoes to a fast food restaurant in Kampala (Nandos).
Trias and its partners in a 3 year programme, supported by the Belgian Government
decided to apply the methodology to a section of the farmers’ associations’ members who
are already organised in groups.
The PAED approach is basically built-up of following steps:
1. Selection of groups
2. Participatory diagnosis (a form of needs assessment): to find out the current situation
including constraints and opportunities of the group
3. Strengthening of existing farmers groups
4. Enterprise identification: farmer groups identify potential enterprises for screening.
5. Training in marketing basics and cost benefit analyses: profits of the identified
enterprises are calculated.
6. Participatory Market Survey: farmers visit markets to find out the market potential of
the identified enterprises
7. Further screening of potential enterprises: farmer groups further screen (promising
marketable) enterprises on production, cultural and social aspects; assessment of any
other criteria identified by the group as important determinant for selection.
8. Enterprise selection: farmer groups select the enterprise they want to develop based
on the outcome of the previous steps
9. Value chain (or Sub-sector) analysis: farmers analyse the constraints and
opportunities in the market chain of the selected enterprise. This includes a validation
meeting with all actors and stakeholders in the chain.
10. Enterprise action planning: farmer groups – in consultation with service providers develop enterprise action plans, based on identified critical points in the market
chain, and incorporating all necessary arrangements needed to set-up the selected
enterprise and market linkage.
11. Formalisation of marketing channels and need for BDS: farmer groups negotiate and
formalise (contractual) arrangements with key market actors and BDS providers.
12. Detailed enterprise planning (or business planning): (based on the above) farmer
groups make detailed plans: from pre-production, through production, to post-
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harvest handling, to marketing and managing of group income and expenses. These
plans should consider agro-technical aspects (how much to grow and when?) and
business development aspects (how much capital do I need? When do I expect my
first returns?). This includes training of farmers in record keeping.
13. Actual enterprise development: farmer groups engage in production, post-harvest
handling and marketing. (if needed farmers are trained using the Farmer Field school
methodology)
14. Performance and impact evaluation: farmer groups evaluate the performance and
impact of their agro-enterprise of the previous season and take decisions for the next
(e.g. scaling-up, scaling-down).
The steps are directly facilitated by the farmers’ associations through intensive group
trainings. Through formal trainings and close mentoring, TRIAS capacitates the
associations so that they are able to provide quality trainings.
Simultaneously, TRIAS works with micro-finance institutions to enable them to develop
micro-finance products (savings and credits) adapted to the needs of the groups.
Steps 8, 9 and 11 allow for arrangements with other actors in the chain (processors,
transporters,…). The programme has limited resources to support these actors. In case
crucial support is needed, Trias will link up with other organisations that have the
resources to engage with them.
Achievements So Far
Trias and its partners started this programme in April 2008. Currently about 1000 farmer
groups with each 15-20 members have gone through the process of PAED. About 3040% of them is now actually engaged in collective marketing and has found a reliable
buyer with which they agreed a written or verbal contract. Around 2/3 of the groups
doesn’t do collective marketing yet but makes progress in that direction: the group
cohesion improved, they agreed on a common goal and vision (written in their
constitution, about 60%), do record keeping (82%), savings (90%), selected a common
enterprise (90%), do cost-benefit analyses for this enterprise (60%), have made a
business plan (50%), use improved technologies and practices to increase productivity
(e.g. improved seeds, 80%) and established marketing and monitoring committees
(80%).
Especially farmers in Hoima who selected upland rice to do business showed some
spectacular achievements: because of the use of improved seeds and technologies, they
were able to double the production. Through selling the rice directly to the miller, the
price obtained increased from 30 to 50 eurocent per kilo. Because of both factors,
farmers’ profits multiplied 10 times! (From 30 to 280 euro per acre)
Less measurable in figures is the increased empowerment of farmers: when visiting
markets in Kampala and other large markets, it opened their eyes and realised the
opportunities (high demand, high prices for some produce), but also their (quality and
quantity issues) and other actors’ challenges (e.g. transport, tax issues). In one instance
a farmer refused to sell her produce for a price offered because she now understands the
price better. Additionally, there is more participation in trainings and more critical
thinking.
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In order to assure that knowledge obtained remains in the District and to make sure that
more farmers will be trained (to mitigate the problem of high staff turnover mentioned
below); the more progressive farmers were trained to become farmer facilitators:
farmers who train other farmers in PAED. So far, the programmes have 100 active
farmer facilitators.
Challenges

Because of the involvement of farmers at all levels and the limited staff capacity of
the farmers’ associations, the process is very time consuming (time keeping,
illiteracy, interference with other programmes) and costly (lots of travel costs for
many people). Yet, donors want quick and tangible results and value for money. It is
difficult to strike a balance between number of groups trained and quality of trainings.
 At the same time, farmers are impatient: they want quick gains (some other
programmes give these quick gains in the form of handouts).
 No equal participation of men and women (esp. when discussing sensitive issues or
when visiting markets): e.g. women are often not allowed to travel to visit markets
 Low group cohesion and multiply group membership: this causes farmers not to be
present during all trainings.
 Staff of farmers’ associations: low capacity, low motivation, high turnover. This is
often caused by the association’s limited resources.
 One of the steps in PAED is a participatory sub-sector analysis which is done by
farmers themselves. This process is an excellent way to make farmers familiar with
other chain actors and increase their self-confidence in doing research. But it also has
its limitations: the research is not scientific and fails to reveal all constraints and
opportunities in the value chains.
Some of the above challenges can be solved over time. The more groups are trained, the
more experience the association’s staff will obtain, the faster the process will go.
Successful farmer groups can convince other farmer groups that patience pays.
Conclusion
The PAED process is a very participative capacity building methodology to enable farmers
to obtain sustainable access to markets. It is a very slow and costly process which
requires a lot of efforts, both from Trias and from its partners. Although most likely not
all farmer groups will succeed, we are optimistic that through ownership of the process
by farmers themselves, most farmer groups will eventually produce for the market and
increase their incomes. Through the process, farmer groups will also be able to respond
properly to market changes (e.g. to investigate the market again, to recalculate
profits,…).
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