ToR - Service Provider for "Scaling Aggregator-Managed Pre-Sorting Hubs for Agricultural Growth in Lebanon"

BACKGROUND AND INTRODUCTION

The ILO BOUZOUR project ‘Building Inclusive Markets and Decent Work for Lebanese host communities and Syrian refugees’ funded by the Swedish International Development Agency (Sida), aims to develop specific agricultural and agri-food value chains with potential for decent job creation and livelihoods of both Lebanese and Syrian vulnerable population groups and in particular women of both communities.

The project makes use of the ILO’s Approach to Inclusive Market Systems (AIMS) to safeguard jobs and livelihoods of vulnerable Lebanese and Syrian communities threatened by the crises and encourage decent job creation for both groups in sectors with potential. To that end, the project uses the market systems development approach to address key sectoral constraints to decent job creation sustainably, in combination with more direct interventions to strengthen capacities of vulnerable Lebanese and Syrian communities and safeguard decent work conditions.

Lebanon’s agricultural sector is currently challenged by fragmented value chains, inconsistent product quality, and limited post-harvest infrastructure. These issues contribute to significant losses, inefficiencies, and constrained market access for smallholder farmers. Existing informal sourcing practices, especially for crops like cucumbers, rely heavily on manual sorting and grading, which increases operational costs, decreases yield consistency, and reduces overall profitability for both farmers and processors.

Recent market assessments and field studies have identified that strengthening post-harvest aggregation and sorting services through decentralized hubs can improve quality control, reduce waste, and enhance value chain efficiency. Successful aggregator-managed pre-sorting hubs have been piloted in certain value chains (e.g., grilled eggplant, potato chips), demonstrating improved operational efficiency and profitability.

However, the scale of these operations remains limited. There is an opportunity to expand existing aggregator-managed pre-sorting hubs to include more farmers and crops, particularly those harvested between August and November, thus improving supply consistency and supporting the sustainable growth of Lebanon’s agricultural sector.

Considering these findings, this initiative aims to engage established aggregators with operational pre-sorting hubs to scale up their models by increasing farmer inclusion and operational capacity, in partnership with the ILO and with the support of technical experts.

OVERALL OBJECTIVE AND SCOPE OF WORK

The objective of this call for proposals is to support the expansion of existing aggregator models that have demonstrated operational success in pre-sorting, post-harvest handling, semi processing, and farmer coordination. Aggregators are businesses that coordinate sourcing, pre-sorting, and selling of produce from smallholder farmers to buyers. The aim is to enable these aggregators to integrate a larger number of farmers within their current crop portfolio, thereby improving market responsiveness, reinforcing quality standards, and enhancing the resilience of local value chains.

Selected aggregators will receive support to increase their pre-sorting and farmer outreach capacity in alignment with existing demand from fresh produce buyers or processors. The goal is to expand within existing value chains and increase the impact on currently handled crops where there is already a market demand.

This initiative is grounded in the findings of a recent assessment, which emphasized the importance of strengthening post-harvest functions and building reliable farmer-aggregator-buyer linkages to increase income generation and reduce inefficiencies. By working with aggregators who are already embedded in the system, this approach seeks to improve inclusion, reduce rejection rates at collection points, and ensure more stable livelihoods for participating farmers.

The objective of this assignment is to encourage established agricultural aggregators to change their business practices by reducing the risk and sharing the costs of innovations that promote the inclusion of smallholder farmers and improve market responsiveness. The intervention seeks to stimulate the development of a sustainable, inclusive business model

Scope of Work

Based on the above, the ILO Bouzour project is seeking to collaborate with up to three (3) service providers for this assignment.

The main interventions and deliverables which consists of the scope of collaboration shall include the following:

• Inclusive Farmer Expansion Strategy
• Strengthening and Scaling Pre-Sorting and Post-Harvest Capacity
• Market Engagement and Demand Alignment
• Business and Operational Sustainability

Each selected aggregator will be expected to develop and implement a comprehensive project proposal that strengthens their business model while expanding opportunities for smallholder farmers and improving post-harvest and market engagement practices. The proposal must address the following components:

1. Inclusive Farmer Expansion Strategy

Aggregators will design a realistic and scalable strategy to integrate a minimum of 5 additional smallholder farmers into their existing sourcing system during the project period.  This integration must be for at least one of the crops they are currently sourcing. The strategy should include:

• Defined onboarding approach, including how new farmers will be supported and monitored.
• Targeted supply volume increases (by quantity or percentage), and how this aligns with market demand.
• Plans for providing technical assistance to maintain quality standards.

2. Strengthening and Scaling Pre-Sorting and Post-Harvest Capacity

• Aggregators will propose upgrades to their existing pre-sorting and post-harvest infrastructure to handle the increased supply while maintaining product quality and reducing losses.
• Expand or optimize facilities (e.g. washing, grading, cooling, packing) to ensure product quality and food safety.
• Meet the specifications of fresh markets and/or processing companies, including buyer-specific standards (e.g., size, ripeness, packaging).

3. Market Engagement and Demand Alignment

Aggregators must demonstrate active and verifiable market linkages, whether in fresh produce or agro-processing. This component should include:

• Evidence of current and prospective buyers, segmented by type.
• Plans to maintain or expand buyer relationships, including new contracts and volume commitments.

4. Business and Operational Sustainability

Proposals must demonstrate how the planned expansion is embedded within the aggregator’s operations and is financially and operationally viable. The proposal should clearly describe:

• The existing business model and how this expansion fits within their current operations.
• Key personnel responsible for project delivery, farmer relations, and market coordination.

5. Monitoring & Learning

• Commit to periodic reporting on progress, outcomes, and lessons learned.
• Identification of key risks (e.g., market disruptions, production shortfalls, logistics constraints) and proposed mitigation measures, particularly considering the current conflict and its potential impact on market access or mobility.

Deliverables

Selected aggregators will be required to deliver the following outputs, which will be used to assess progress, impact, and release of payments:

Deliverables

Description

Due date

1- Inception Report and Implementation Plan

A detailed inception report outlining the aggregator’s operational and strategic plan for the assignment. The report should include:

• An expansion strategy detailing how the aggregator plans to engage additional farmers and markets.
• Criteria and methodology for farmer selection and onboarding.
• A plan for market engagement, including identification of target buyers, buyer consultations, or agreements in progress.
• Staffing plan and activity timeline.

Within 2 weeks of contract signature

2- Midline Progress Report

A narrative and financial report summarizing progress to date, including:

- Progress on farmer onboarding

- Updates on post-harvest

- Progress in market linkages and sales activities

- Adjustments to plan/timeline if any

- Activities completed and preliminary results

-Financial update with supporting documentation for expenses

15 September 2025

3- Final Technical Report

A comprehensive report covering the entire implementation period. Should include:

- Total number of farmers engaged

- Summary of infrastructure improvements

- Summary of all activities implemented

- Final results and performance against targets

- Full documentation of incurred costs (bank statements, invoices, receipts)

3 November 2025

4- Monitoring data set and scale-up

- Basic data on farmer participation

- Crop volume and quality

- Rejection rates (if available)

- Buyer feedback

- Lessons learned and recommendations for sustainability

Submitted with Final Report

The service provider will also submit to the ILO the following materials:

1. 1. Electronic copies of all data sets
   2. All quantitative and qualitative data (completed questionnaires, recorded interviews, focus groups, etc.)
   3. Any other documents that will be used or collected during the assignment

PAYMENT SCHEDULE

This assignment is tentatively expected to start on July 2025 and shall be completed by 3 November 2025.

1. First payment covering 40% of the full payment,  by 14 July 2025 upon satisfactory delivery and project approval on the following deliverable:

• Deliverable 1: A Detailed inception report outlining the aggregator’s operational and strategic plan for the assignment. The report should include: An expansion strategy detailing how the aggregator plans to engage additional farmers and markets. Criteria and methodology for farmer selection and onboarding. A plan for market engagement, including identification of target buyers, buyer consultations, or agreements in progress. Staffing plan and activity timeline

2. Second payment covering 40% of the full payment,  by 15 September 2025 upon satisfactory delivery and project approval of the following deliverable:

• Deliverable 2: A narrative and financial report summarizing progress to date, including: - Progress on farmer onboarding - Updates on post-harvest - Progress in market linkages and sales activities - Adjustments to plan/timeline if any - Activities completed and preliminary results -Financial update with supporting documentation for expenses to date

3. Third payment covering 20% of the full payment, by 30 November 2025 upon satisfactory delivery and project approval of the following deliverable:

• Deliverable 3: A comprehensive report covering the entire implementation period. Should include: - Total number of farmers engaged - Summary of infrastructure improvements - Summary of all activities implemented - Final results and performance against targets - Full documentation of incurred costs (bank statements, invoices, receipts) - Basic data on farmer participation - Crop volume and quality - Rejection rates (if available) - Buyer feedback - Lessons learned and recommendations for sustainability and scale-up

All payments are in fresh USD via international bank transfer. A USD account should be available in the name of the service provider for payment of transfers. Payments will be made to the submission of deliverables and to the satisfaction of the ILO.

Required qualification

• At least 5 years of experience as an Aggregator with an existing pre-sorting hub or post-harvest handling facility.
• Working with at least 1 crop harvested between August–November.
• Employs a minimum of 5 full-time staff members.
• Minimum annual turnover of $50,000
• Works with at least 10 farmers across one or more crops. Ability to implement farmer onboarding, technical assistance, and quality control mechanisms.
• Verifiable, active relationships with buyers, such as Processors, Retailers.
• Ability to manage co-investment or cost-sharing

Submittals

Applicants must submit the following documents:

Technical proposal including methodology and:

• • Company background and experience
  • Current aggregation model: number of farmers currently engaged, description of infrastructure, and main clients
  • Crops currently sourced, crop proposed for project and associated buyer
  • Strategy for increasing farmer base, clients, and infrastructure capacity
  • Implementation timeline and staffing
  • Monitoring and reporting approach (crop volume, buyer feedback, others)
  • Annexes: contract farming examples or farmer engagement
• Financial Proposal (following the budget template below), including:
  • Budget in USD (with breakdown and justification)
  • Description of cost-sharing/co-investment plan
• Supporting Documents:
  • Copy of Business registration
  • Recent bank statement (USD account)
  • Proof of buyer agreements for the past 5 years (letters or contracts)
  • Proof of experience with the proposed crop (e.g., buyer agreements, portfolio)
  • Proof of minimum annual turnover of $50,000
  • List of farmers currently engaged