Consultancy: Value Chain Analysis In Akkar And Bekaa Governorates Of Lebanon

Terms of Reference   Role: Consultancy: Value Chain Analysis in Akkar and Bekaa Governorates of Lebanon              Supervisor: Iwona Safi, PDQ Director   Time Frame of Assignment: Phase 1: Start immediately (21 March). 2 consultants - x 10 days. Phase 2: April/May. 1 consultant x 1 month (approx. 21 working days)  Location: Beirut, Akkar, Bekaa                                                              Value Chain Analysis In Akkar and Bekaa Governorates of Lebanon     1.    INTRODUCTION AND BACKGROUND   Save the Children (SC) has been working in Lebanon for more than five decades and has responded to the Syria crisis since the onset. In 2013, SC expanded activities to also comprise the Food Security and Livelihoods sector targeting Syrian refugees and host communities. Today, SC implements a number of projects to meet basic needs through direct cash transfers and distribution of vouchers for food as well as working to enhance livelihoods aiming to reach both Lebanese and Syrian families economically impacted by the crisis.   SC is to expand on one of the livelihoods activities called Home-Based Skills Development (HBSD). In this respect SC is looking for a consultant to undertake Value Chain Analysis (VCA) in Akkar and Bekaa Governorates to inform this project expansion. This consultancy is divided in two phases as described below, with Phase 2 contingent upon SC receiving confirmed funding.   2.    OBJECTIVE   The purpose of this research is to explore selected value chains in Akkar and Bekaa and provide clear recommendations on how target groups can extract greater value from these value chains. The consultancy will be conducted in two phases to inform project expansion in the immediate and intermediate term. PHASE 1: MAPPING/ANALYSIS OF VALUE CHAINS  Specific objectives and deliverables:   A) Value chain selection:  Deliverable: Ranking and selection of appropriate value chains     The consultant should start by identifying value chains that show potential in the target areas. Through pre-defined criteria, these value chains should be ranked to determine which value chains will be the subject for mapping and analysis. Ranking will be based on secondary data supplemented by Key Informant Interviews where this is required.  The criteria used will include - but not be limited to: -       Potential of the value chain to improve livelihoods for poor people in Akkar and Bekaa, with a particular focus on women and youth. -       Market potential: Unmet demand or growth potential for the product/service. -       Local availability of inputs/raw material. -       The possibility to start within a short timeframe. -       Grading of entry barriers, in particular the needs for investments, technological inputs, risks for the participants. -       Possibility to involve a larger number of people (can suggest two different value chains per area in order to accommodate more participants).  Based on a scoring of each value chain, the consultant will - together with SC - decide for which value chains one should proceed with a value chain mapping and -analysis (1-2 value chains per area).   B) Value chain mapping:  Deliverable: Maps and matrices (will also form part of the final report) Through mixed methodologies (such as surveys, interviews, focus group discussions, PRA, observations), gather information to map the selected value chains. The maps and matrices should include but not be limited to: -       Core processes in the value chain - from raw material to final consumption (include provision of input to produce raw material if applicable, including input services). -       The flow of product, information and knowledge in the value chain and possible barriers in this flow. -       The main actors involved in these process and their main tasks. -       Volume of products, number of actors at each step in the chain. -       How the value change along the chain. -       Show the location and position of the poor in the value chain. -       If applicable, the value chain mapping should include seasonal variations.   C) Value chain analysis: Deliverable: Maps and matrices (will also form part of the final report) -       Characteristics of actors, profit and cost structures; destination and volumes of sales. -       Identify the distribution of benefits among actors in the chain and where interventions can lead to better income opportunities for poor people with analysis of revenues and costs (profit potentials). -       How the value of the product changes as it moves up the chain. Does the increase in product price accurately reflect the costs and risks at each step? -       Examine the role of upgrading within the chain (quality, design, diversification) - profitability and limitations with entry barriers. -       Analyse options and potential for a demand-driven upgrading (what is required in terms of knowledge, skills, technology, and support services). Note: This part will feed into phase 2 of the consultancy. -       The key constraints at various levels in the chain, and possible solutions to these constraints. Note: This part will also inform phase 2 of the consultancy. -       Other issues as identified through the value chain mapping. D) Draft and present a final report Deliverable: Final report, not to exceed 25 pages excluding annexes The report should clearly show how SC's target groups can extract greater value from the analysed value chains in the short term. The report should also outline the actions and/or investments required by SC in overcoming entry barriers (due to short-time to conduct the research, exact calculation of investment is not required). The report should include the value chain maps and matrices with calculations as mentioned above.  Suggested timetable: Day 1 and 2 Prepare a criteria table for selection of value chains for mapping and analysis. Based on review of secondary information and KII as required, suggest 1-2 value chains per area (2-4 value chains in total) for mapping and -analysis. To be discussed and agreed with SC before start of field research. Day 3 to 7 Gather data for value chain mapping and analysis in Akkar and Bekaa. Prepare maps and matrices (overviews/calculations) and conduct analysis as data are starting to form a coherent picture. Day 8 Prepare presentation and draft report including the value chain mapping/matrices and share with Save the Children. Day 9 Save the Children to provide feedback/comments on the report. Day 10 Incorporate feedback and submit the final report to Save the Children   PHASE 2: RESEARCH ON HOW TO UPGRADE THE SELECTED VALUE CHAINS The tasks under this phase of the consultancy will need to be further refined based on the findings and selected value chains in Phase 1. Phase 2 is contingent upon SC receiving confirmed funding. In phase 2, one will look at opportunities for upgrading the whole value chain; however still with the objective of increasing income for the poor households targeted by SC. Upgrading can be linked to processes, products (including diversification) and functional upgrading. The consultant will need to explore government policies and regulations impacting production and standards, including regulations related to establishing and managing businesses that may function as barriers for micro-enterprises. Further, the consultant will need to investigate commercial standards and quality grading in the value chains, whether formal or informal. This includes exploring if and how quality definitions may change along the value chain or vary in different market channels, i.e. channels aiming at different end-consumers. To the degree there are distinct market channels, what are the barriers for target beneficiaries (i.e. barriers at household level as well as at a structural level) to partake in the more lucrative market channels? What steps can SC take to assist target households in entering more lucrative market channels for the selected products or services? It will likely be of importance to also investigate existing finance institutions in the target areas and how to link the participant households to these finance institutions for them to access investment loans to expand their enterprises beyond the period of SC's direct support. Timeframe: This needs to be reviewed after the first phase of the consultancy. It is expected that this part of the study will take approx. 1 month. Competencies Demonstrable experience in value chain analysis/market system analysis, preferably in Lebanon or in the Middle East more broadly.  Strong analytical, research and presentation skills Ability to work under pressure in challenging environments Good communications skills with abilities to converse with different actors  Fluency in Arabic and English.