Consultant - Niger Value Chain Assessment

1. Background and Context

Founded in 1945 by U.S. Lutherans to respond to the humanitarian needs of post-war Europe, Lutheran World Relief (LWR) today reaches millions of people around the world through its programs in emergency response and sustainable development. Driven by local needs and working with local partners, LWR focuses on underserved rural communities, with particular emphasis on improving livelihoods for small-scale farmers and on ensuring sustainability by strengthening local organizations\' capacity. LWR holds itself to the highest standards of transparency, accountability and stewardship, testing innovative approaches then seeking ways to bring proven methods to scale.

Within Niger, LWR is currently developing an integrated value chain development project with the goal of improving year-round access to food for smallholder farmers in the Tahoua Region of Niger. LWR has decided to further research the possibilities for support to increase production of high value crops in the Tahoua Region of Niger. The principal aim of this study is to assess specific value chains and sub-value chains where an integrated LWR intervention is possible, feasible, and will contribute to increased incomes for smallholder farmers through export sales.  LWR is commissioning this study in order to expand its understanding of the sector value chains as a means to guide thematic program expansion and related development of strategic alliances.

This document summarizes the tasks to be performed under a consultancy to conduct a value chain assessment (VCA) of high value crops in Niger. The VCA will include desk research and primary data collection to collect specific and timely information.

The consultant team will consist of one Principle external consultant, who will be responsible for conducting research and producing the final deliverable. S/he will be supported by relevant LWR HQ and field staff.

Consultant: Principle Investigator, responsible for all deliverables

Duration of Consultancy: Up to 30 days

Start Date: November 3rd, 2014

Final Report submitted by: December 20th, 2014

2. Purpose

LWR contributes to sustainable economic development in countries through building resilient local communities and expanding economic growth opportunities. This is done by targeting smallholder farmers from developing countries to expand their production, access markets, and build relationships with exporters and buyers.

LWR\'s agriculture programs carefully select value chains based on 1) opportunities to increase incomes of smallholder farmers, 2) opportunities to expand export or market potential, 3) the ability of LWR and partners to tackle bottlenecks in the value chain, and 4) the possible significant contribution of the program to sustainable economic development.

LWR will use the information gathered by this consultancy to inform the development of an initiative to improve year-round food security for households exposed to climate shocks in the Tahoua Region of Niger.

The final report should include findings on each of the points addressed in the questions section which will be used to inform decision-making pertinent to ongoing and future implementation of this program for LWR.

3. Scope

The first aim of the VCA is to assess the market potential of specific cash crops including but not limited to:

•·         Animals/Livestock and animal products

•·         Irrigated production-wheat

The second aim of the VCA is to identify other irrigated production cash crop value chains with significant income generating potential for smallholder farmers in the Tahoua Region of Niger can be proposed.

The objective of the VCA is:

•1.      To give a realistic indication of the market potential (national, regional and export) of these value chains;

•2.      To give a realistic indication of the sustainable economic development potential for smallholders (including technical and economic feasibility);

•3.      To visualise the value chain(s) in order to get a better understanding of the value chain(s), its opportunities and bottlenecks

•4.      To identify key downstream chain actors (financiers/investors, wholesalers, processors, exporters, importers and their needs in terms of production quality, conditioning, timing and volumes)

Ownership

Besides the use of the VCA as a basis for the programme design, it will also be used as basis for stakeholder dialogue in the selected value chain(s). Importance is given to the active involvement of stakeholders along the value chain during the phase of analysis in order to secure ownership.

Cooperation

As LWR\'s core competences lie in increasing quality and quantity of production, cooperation with other national and international organizations and companies working in complementary areas, identification of opportunities for cooperation in the value chain(s) is therefore part of the scope of the VCA.

4. Expected Results

A report, in the format described in Annex 1, detailing each product/value chain:

1) The market demand and the opportunities these markets hold for companies within the value chains of selection. This includes, at least:

a) Volume of current demand for the (quality of) products in the value chains

b) Opportunities for growth, and conditions for growth

c) Requirements for the product to realise growth

d) Types and locations of available markets

e) Types of available distribution systems

f) Buyers and selling arrangements within the market

g) Trends in price levels

h) Trends in supply and demand

2) Sustainable economic development potential. This includes, at least:

a) Technical feasibility for small-scale producers to meet export conditions

b) Economic feasibility (cost-revenue analysis) for smallholder producers

3) Prepare a complete value chain map showing who are the chain stakeholders (actors, supporters and influencers) in the value chain(s). See Annex 2).

a) Identify the main bottlenecks (incl. finance and investment) along the export value chain that hinder exports. In other words: why export currently is not reaching its full potential?

b) What service provider(s) or institution(s) is/are in the position and/or show the potential capacity to remove the bottleneck(s)?

c) Describe what opportunities exist in the chain(s), in terms of possible improvements that lead to significant increases in export volume. This should relate to the demand in the market on the one hand, and the possibilities that exist within the chain(s) on the other hand.

The potential participating chain actors/companies, their role, their key contacts and their experience with exporting, level of quality standards, and interest in exporting. Specifically, review their market needs in terms of volumes, quality/conditioning and timing and present findings in tabular form. See Annex 3.

5. Methodology

The consultant will be expected to use mixed methods to collect the data specified above. Sources of data may include industry, government, NGO, UN or USAID agency reports, as well as interviews with industry representatives, NGOs, local authorities, government line ministries and producers. Specific methodological approaches will be discussed in joint consultation between the Consultant, the LWR Focal Point, LWR Niger Country Director, and LWR Deputy Regional Director.

Desk review

The desk research includes a research into the supply and demand side of the high value crop value chains in Niger. The contractor will collect all relevant studies and materials already produced by LWR, donors, NGOs and/or research institutes in the recent past, and detail the outcomes of these studies, as a starting point. Detailed information on the demand side, among other sources, can be collected from research studies, key informant interviews, or other contacts.

Interviews

Will include structured/semi-structured interviews with industry representatives, NGOs, local authorities, donors, government line ministries and producers.

Questionnaires focused on what value chain actors are doing, why they are doing what they do and how they formulate their decisions.

6. Deliverables

1) Inception Report - Due date: November 20 th, 2014

Initial assessment responding specifically to the questions outlined in this TOR.

2) Final Report - Due date: December 10th, 2014

Detailed assessment responding specifically to the questions outlined in this TOR. Information on methodologies used, key definitions, tools, questionnaires or interview guides and data collected should be included as appendices.

3) Supplemental research - Due date: December 20th, 2014

Detailed responses to follow up questions from LWR pertaining to the data gathered during the assessment and presented in the Final Report.

8 Qualifications and Application Procedures

• At least 10 years of practical experience in the field of export or enterprise development, and development of enterprise support institutions.
• Preferably experience in the sector; substantial industry experience is an asset.
• Experience with value chain analysis in developing countries; and has at least conducted one or more value chain analyses before as lead consultant/researcher.
• Proven record of international programme/project development experience.
• Experience in, understanding of and a network in the West-African region (more specifically Niger).
• Outstanding inter-cultural communication, networking and coordination skills.
• Excellent written and oral English and French.