Terms of Reference Consultancy
VALUE CHAIN/MARKET SYSTEMS ANALYSIS OF AGRICULTURAL CROP AND ANIMAL PRODUCTS IN Balcad DISTRICT, Middle Shabelle region -Somalia
Background and Context
Balcad District, is one of the districts of Middle Shabelle region. It is located in the central region and borders Galgadud to the north, Hiran to the west, and Lower Shabelle and Banadir regions to the south and the Indian Ocean to the east. Balcad district consist of around 20 villages of which 9 are fully accessible (Balcad Town, CeelGeele, Carofaag, Buulomadow, Qalimow, Kurshale, Hawotako, Bulobarwaqo, Buloraqayle), 8 villages that are completely inaccessible (Geed Faqay, Fiddodiir, Jeda, Dhiiqaley, Cadayga, Calitubaako, Dacaarka and Deganley) and 3 villages (Isgoys, Garsaale and Galoley) that are under local communities control but have heightened insecurity incidence due to raids by insurgent groups . The district is predominantly occupied by the Abgaal clan of the Hawiye tribe and also has large populations of the Hilibi and Mobileen clans. The marginalized communities of the JareerWeyn tribe population is also very significant. On the other hand, other clans from the Hawiye tribe have lesser populations in the district and they include Hawadle, Badi Cade, Galjaceel, Murunsade and Ujenjeen.
The district had estimated population of 269,851 as of 2014. [1] During the regime of Siyad Barre, the district prospered to become one of the most resourceful places in Somalia, with more than five large industries; including Jowhar Sugar manufactory, and SNAI PIAZA which was Somali Italian cooperation industry. [2]According to the Somalia Livelihoods Profile, 2016, livelihoods in Jowhar District fall under four main zones: The Central agro pastoral cowpea belt where livestock production is the driver of the local economy and Cowpeas provides a supplementary food and income source to purchased staples, livestock sales and consumption of bush products. The Southern Inland Pastoral Livelihood zone, a semi-arid zone covered with dense shrubs interspersed with grazing areas comprised of savannah grasslands, Shabelle-juba gravity irrigation zone area comprising agro-pastoral communities who live 20-40 km away from the river and who combine irrigation and rain-fed farming with livestock production. Farmers use different farming methods – primarily gravity flow irrigation but also flood recession and rain-fed farming– to cultivate a mix of food and cash crops. Maize, cowpeas and sesame are grown extensively for consumption as well as for sale. Lastly, the district is part of the Bay-Shabelle High Potential Agro-pastoral Livelihood Zone which is distinguished by its fertile soils and higher annual rainfall levels, which ranges from 400 – 500 mm during an average year. Jowhar town is the Headquarter of the newly formed Hir-Shabelle regional state and is under vigorous developmental gear. The town is more integrated with Mogadishu trade flows as well as the Shabelle riverine markets[3].
At present the infrastructure in Balcad District is minimal. In particular, there are very few services supporting farming or livestock production. Against this context, agriculture will continue to be the dominant sector of employment and a vital source of labor for youngest people in Somalia. Harnessing the potential of Somali youth to participate meaningfully in their food systems, from production to plate, has the potential to increase their productivity and revenues, as well as ensure the resilience and food security of their households.
Program Description
Mercy Corps in partnership with Juba Foundation is implementing a 15 months’ project: Development of Agricultural Resources and Youth Economy Livelihoods (DARYEL) in Balcad district. The project goal is to improve productivity and competitiveness of the productive sectors in Balcad District to create opportunities for youth, women and men by investment in the agricultural/livestock sector and employing a combination of skills development, financing facility, technical and business support to promote employment and enterprise development within the agricultural/ livestock productive sectors. The project is designed based on our experience that investment in productive sectors and supporting with inclusive financial sector developments that can unlock access to financial services and catalytic investments will help people make their way out of poverty or at least maintain incomes in crisis or economic shocks by facilitating economic growth and stability. The project will contribute to the long-term stability, peace, and social and economic development in Balcad District by opening the productivity and growth of productive sectors and local enterprises through access to investment and finance and enhancing agricultural skills and expertise of the youth and women.
At the overall level the theory of change behind the project is that if the productive sectors and enterprises in Balcad District are catalysed through essential investment support coupled with increased finance and linkages to markets, and if the participation and representation of youth, women and men and in particular those from disadvatnage groups in the productive sectors like agriculture/ livestock is enhanced, then opportunities for social and economic development will be available to a wider population, and as a result conflict will be reduced and stability in Somalia enhanced.
The project specific objectives are;
To address inter-dependence of the state, private sector, cooperatives and civil societies.
Implement demand driven technical vocational trainings with standard basic skills.
Support individual income generating activities and micro-financing small private sector enterprise growth
Purpose and objective
The purpose of the value chain analysis of the agricultural crop and animal products is to provide practical recommendations and input to inform the implementation of the economic development project in Balcad district. The assessment has the following objectives:
The assessment will map and profile the existing value chains both crops and livestock in the district with the intended outcome to identify feasible and most effective agric. products women and youth participation in value chains (current roles)
Generate a shortlist of 4-5 profitable and technically feasible crops and livestock in the district. Criteria for shortlisting and selecting value chain should include gender balance, potential for growth and potential pro-poor adaptability.
To further assess end-to-end and provide detailed analysis of at least 2-3 selected crops, livestock chains and provide recommendations on how selected target group can be engaged in the value chain in different roles (Supplier of input, producer, processor, transporter, traders).
Assess selected market system supporting environment (services, policies and rules regulations, infrastructure), and market constraints in the selected target district.
Describe skills training needs related to potential roles in the value chain and suggest off-farm income generating activities and technical vocational skills in demand based on the market analysis, feasibility (technical, social, economic) and local/regional opportunities for acquiring skills, including IGA and skills for persons with disability and women. Also to map existing vocational training service providers (public and private) in the district or surrounding areas and which could be considered as prospective partners, assess their capacity as well as the quality of the training modules, and type and cost of trainings available.
To identify areas of intervention in the value chain cycle for the youth, persons with disability and older men and women and specific skills training needs. The analysis will consider the specific needs of the beneficiaries, the study will inform Mercy Corps of any existing age or gender-related barriers or any other social obstacles to access livelihood opportunities, and which shall be considered for future planning. Moreover, it shall analyze beneficiaries’ livelihood and market participation behaviors, resilience statuses, and preferences.
To provide a gendered and conflict analysis aimed at informing targeting of beneficiaries, this includes but not limited to exploring and understanding the different roles and distribution of power between men and women
Scope of work
In carrying out the assessment the assessor should therefore analyses the following:
Context and political dynamics
How is power distributed and exercised? (clan-based, elections or…?)
How is the district governed? What are the formal governance structures in place? How and when did the governance structures emerge? What is the M / F representation?
How do key actors (M/F) perceive the formal governance structures (win-win or there are losers and winners). What is the relationship between societal groups and communities and government institutions in the area? Which communities are more supportive and which are less so. Why? How does this manifest itself? Please draw out any key fault-lines for political conflict, particularly where they link to wider issues in the FMS.
How is political competition between individuals, clans, and groups conducted?
What role do women play in political competition – how is their role(s) conducted?
Agronomic production profile of key crops/animals
Identify the currently dominant agronomic production practices including specification of agricultural practices of soil & water management, pest & pesticide management, practices of land clearing and land use change, growing season and labour use patterns. The consultant is required to pay particular attention to quality of crops produced as well as farming techniques required to achieve market standards.
Products-
Characterize the marketing of various products within the respective VCs;
Supply chain of the products.
Volumes of each product availed in the market.
Value addition, packaging and pricing along the supply chain.
Consumer perceptions.
Estimate the market potential and actors at the end market.
Characteristics of supply chain actors.
Relationship among supply chain actors.
Linkage between producers, traders and processors and transporters.
Market Potential:
Establish market size (local and external) and market penetration by local producers
Conduct a VCA to identify the different actors in the chain, systemic constraints, and value shares accrued at different stages on the chain.
Identify constraints that limit market expansion.
Missing or inadequate inter-sectoral or crosscutting markets.
Estimate market potential of the prioritized products within the value chains.
Identify local/external end markets including cross-border trade for the identified products.
Collective Marketing and Value Chain Efficiency
Assess the utility and potential for improving market efficiency through collective marketing; propose ways of achieving this and minimum quality standards required.
Establish existence of any producer groups for the various crops and livestock, their capacity, incentives and constraints.
Determine the level of market orientation and market integration by producers.
Recommend process for institutional formation to facilitate collective marketing perspective for the prioritized products.
Suggest improvements in the value chain system to ensure direct linkages of the farmers with the major markets and increased incomes from their products.
Access to finance
Mapping of key financial institutions (formal and informal) in the district and outlining their services and their key customers including their capacity, incentives and constraints.
Analysis of how formal and informal financial actors respond to risks and shocks.
How are entrepreneurs and small scale farmers using their services.
What kind of business relationships exit between financial institutions and farmers/youth or women?
Explore the requirements to access credit and the challenges faced by women in accessing credit given the cultural,economic and political context in Somalia
What are the opportunities for strengthening or linking farmers to FIs?
How can we incentivize FIs into the value chain?
What mechanism can we use to administer business grants to farmers/youth/women.
What sustainability mechanisms can be adopted.
Skills gap
What are the key skills required in the agriculture and livestock stock?
Are the skills available in the market, in not what are the reasons.
How can we cover the gap?
Is there vocational training institutes-private/public for the project to collaborate with? What are their capacity, incentives and constraints
What are the costs associated with the TVET in the district?
Crop inputs
How does the crop inputs market function (e.g. seeds, fertilizer and pesticides)? What is its performance level?
How do actors working in crop inputs respond to risks and shocks in their environment?
Who are the key market actors? What are their capacities, constraints and incentives?
Mechanical equipment
How does the mechanical equipment market function? What is its performance level?
Who are the key market actors? What are their capacities, constraints and incentives?
Fodder market
How does the fodder market function? What is its performance level? How is the information on environmental and social management especially for the fodder and animal health products managed and utilized?
How do actors in the fodder market respond to risks and shocks?
Who are the key market actors? What are their capacities, constraints and incentives?
Animal health workers
How does the animal healthcare market function? What is its performance and quality level?
How do animal health workers, and the actors they work with, respond to risks and shocks?
Who are the key market actors? What are their capacities, constraints and incentives?
Rules and norms:
What are the key government regulations and laws affecting the target market systems? How are they affecting them?
What are the key government programmes affecting the target market systems? How are they affecting them?
Who are the key market actors? What are their capacities, constraints and incentives?
What are the key development agency programmes affecting the target market systems? How are they affecting them?
What actors have more power or control over the target market system and why?
What social dynamics/norms affect the target market system? How do they affect access to employment for different groups?
Does activity in the target market system create the risk of conflict? How?
What other informal norms affect the target market system, value of government visibility and engagement?
SWOT analysis
Summary of SWOT (strengths, weaknesses, opportunities and threats) analysis of the identified key crop and livestock value chains derived from the different aspects analyzed.
Action Plan
Propose and draw recommendations and suggest strategies and action plans for supporting upgrading the livestock and crop value chains, with specific interventions, indicative timeframe, and agents to address constraints identified. To inform how the programme should be implemented to strengthen the value chain and based on what the programme is expected to accomplish, provide recommendations of potential future areas of programming.
Methodology
The methodology will include but not limited to:
Desk review
The desk review includes research into the supply and demand side of agriculture products mainly for domestic markets. The consultant team will collect all relevant studies, materials and statistics already produced by relevant government agencies and other donors, NGOs and/or research institutes in the recent past, and detail the outcomes of these studies, as a starting point to map the value chain and to reveal the main constraints and opportunities. A list of references and materials used should be provided to Mercy Corps.
Initial market mapping
Work with the MC team to identify relevant functions of the focal market system (market system donut), and to identify relevant actors and other stakeholders for each market, and map the relationships between them (market actor maps).
Field work – data collection
Primary data collection in the field should be undertaken by the consultant team who are expected to conduct the fieldwork to collect missing data, assess the specific situation and engage with potential stakeholders and key informants for the collection of their views. This is done using agreed Mercy Corps provided tools and Mercy Corps led training of data collectors before data collection.
The fieldwork comprises:
Identification of the key chain actors; interviews them where possible;
Interviews with other chain stakeholders such as input providers, farmers, state agencies, financial institutions, universities, and donor organizations.
Interviews with key informants in the district.
Field survey to quantify/collect statistics on number of chain actors, prices, current sales, employment, market trends, sustainability standards etc;
Focus group discussions with target beneficiaries ie farmers, youth, women etc
Presentation of preliminary findings to Mercy Corps team and donor (SSF) from which brainstorming of points of leverage can be done.
Data processing and reporting
Field information and data will be analyzed by the consultant team in order to produce first draft report for the value chain. A workshop/meeting with consortium staff will be organized where the consultant team will present their findings and proposed strategies and action plans for supporting economic recovery and stability in Balcad for comments from invited participants including representatives from value chain stakeholders. The final reports will be produced taking into account the feedback from the consultation workshop.
Key outputs:
The market assessment and value chain analysis report for on and off-farm livelihood options and opportunities, TVET and value chains including but not limited to;
List of potential markets and value chains along with list of selected types of crops and livestock value chain and few recommended technical vocational skills for male and female separately for analysis and how this decision was made.
Identification of areas in the value chain where women and women and persons with disability can be engaged
List of actors – describe the actors in the market system/value chain – producers, aggregators, wholesalers, retailers, consumers, transporters, financial etc. Describe what the role of actors in terms of the market, present what costs they incur, what income they make, assess their risks, present data on the margins at each step along the value chain, capacity, incentives and constraints for each actor and where applicable provide coordinates of key actors.
Enabling Environment – describe the policies, rules and regulations governing the market. Key areas to consider – weights and measures (informal systems often cause mistrust), fuel pricing and subsidies (related to transport costs often a key market constraint), etc.
Market Constraints (including graphic) – analyse and describe market constraints as they relate to the target group.
List of programme intervention options/analysis based on identified points of leverage in the VC – these should directly address the market constraints. Discussion and feasibility analysis.
Potential of the growth/market for the proposed value chain interventions and predicted volume of trade in the proposed interventions.
Recommendation for best strategy to move forward and implement these interventions and improve the economic situation in the district and stability.
Expected Deliverables
The required outputs of this consultancy will be as follows:
An inception report (maximum five pages) outlining the approach/methodology and execution programme/timetable. This report shall be submitted for review and approval by MC.
Agreed data collection tools provided to the consultant by MC shall be submitted with the inception report, for review and approval by MC.
Draft VCA report which shall be submitted after completion of the field presentation of the key findings to the stakeholders – Oral presentations of top line findings from diagnostic, mapping and recommendations to Mercy Corps and its donor
The final report incorporating comments / feedback from the Contracting Authority should be submitted after getting feedback from Contracting Authority. The report must be drawn up in 2 copies and submitted also in soft copy (in MS WORD or PDF Formats) to the Contracting Authority.
Final Assessment ReportOutline:
The final report outline should contain at least the following parts:
Executive summary
Thesocio-economic contextofthe value chain andanoverview of the chain.
Research Objectives and Questions
Research methodologyutilized
Possible Limitations to Interpretation of Data
Findingsfromvaluechainanalysiscoveringtheaspectsfromtheexpectedoutputsabove, reflectedinthefollowingsections:
Agronomic productionprofile
Analysis ofthe marketand demand forvalue chain outputs
Value chainmapping: analysis with the use of the donuts andmarket map therelationsbetweenactorsand stakeholders includingactorsandtheirfunctions,supportersandtheirfunctions,serviceprovidersand their functions, flowofproducts along the chains(typesandvolumes)andflowof informationaswellasflowoffinance.
Functionalanalysisofthe valuechainand skills/technologiesused inthechain, aswellasof constraintsto qualityimprovements inthechain.
Analysis ofbusiness developmentservicemarketforthe chains
Economicanalysisofthevaluechain.
Analysis ofthepolicy&institutional environment
SummaryofSWOTanalysisforvaluechain.
Proposed strategies andaction plans forsupporting community-based resilience of the value chain.
Lessons learned, Emerging policy and research initiatives
Conclusions and Recommendations
Appendices(listofinterviewedinformants,socio-economicinformationandanalysis,questionnaires, mapsofstudiedareas,et)
Timeframe: The consultancy will be for 24 days from the date of signing the contract as per below table.
Activity/sub-activity
Outputs/milestones
Time
Submit proposals (technical and financial)
Full proposal
31 October 2018
Selection of consultant team; signing
contract with the selected team
Contract signed
03 November 2018
Discussions of tools and desk review
Completion of desk review
05 November 2018
Data collection
Quantitative and qualitative data collected
15 November2018
Presentation of preliminary findings
Debriefing workshop and approved report outline by Mercy Corps
20November2018
Provide first draft of reports for review
Draft reports reviewed by Mercy Corps technical team
23 November 2018
Incoporating comments and final version
Final reports submitted and
approved by Mercy Corps
27 November2018
Skills, Experience and Qualifications
At least 5-8 years’ direct experience working on agro/dairy value chains, market assessment and market development strategies.
Post graduate level qualification in related subjects (Business administration (Marketing), economics, Food security, or related).
Demonstrable experience in market assessment, Value Chain Analysis and Technical Vocational and Education Trainings (TVET).
Strong analytical and critical thinking skills.
In-depth knowledge of local market trends.
Excellent communication and facilitation skills.
Willing to travel to programme district in Somalia
APPLICATION PROCESS
Applicants request full terms of reference from Mercy Corps
Submit expression of interest,
The EOI should include:
A suitability statement including CV of participating consultant (s) with details of qualifications and experience.
Technical proposal that summarizes understanding of the TOR, methodology and tools to be used.
Work-plan clearly indicating the activity schedule.
Financial proposal providing cost estimates and consultancy fees. Contacts of two organizations that have recently contracted the consultant to carry out similar assignment.
A sample of relevant written work
Interested candidates who meet the required should submit a letter outlining relevant experience and suitability for the consultancy their expected fee, CV, Reference tobmohamud@mercycorps.orgnot later than October 31,2018
[1]UNFPA 2014 Population Estimates
[2] Somalia-Livelihood-Profiles-30-June-2016.
[3] Ibid.
SOURCE: Terms of Reference Consultancy VALUE CHAIN/MARKET SYSTEMS ANALYSIS OF AGRICULTURAL CROP AND ANIMAL PRODUCTS
