Quality Management Consultant

  RFQ-DAI-LIVCD-Y5-209 – REQUEST FOR CONSULTANT   FOR   PRODUCTION OF QUALITY MANAGEMENT MANUAL FOR POME FRUIT PRODUCTION AND SALES IN 2 DIFFERENT PRODUCTION ZONES   SOW - DESCRIPTION OF SERVICES AND DELIVERABLES     BACK GROUND   The Lebanon Industry Value Chain Development (LIVCD) is a five year program funded by the United States Agency for International Development (USAID) and implemented under the leadership of Development Alternatives, Inc. (DAI).  The principal goal of the LIVCD Project is to enhance economic opportunities in Lebanese rural areas through improving the competitiveness of the following value chains: processed foods, grapes, olive oil, pome fruits – apples and pears -, avocados and cherries, and a basket of rural products such as honey, pine nuts and aromatics herbs, and rural tourism.    Most farmers in the pome fruit value chain have very old orchard with old varieties, 40 to 60 years old. With the lack of effective extension service, growing techniques are inadequate and the production is done with little understanding of horticultural principles that negatively affect the quantity, quality, and shelf life of the fruit.  This result in a low percentage of Grade 1 fruits and high prices which hinders access to high value markets in local and export channels. In addition to technical barriers, there is a lack of traceability which is being more and more required by traders and exporters. The apple value chain in Lebanon is relatively fragmented, particularly at the production and marketing levels. Total land planted in apples is approximately 13,500 ha according to 2011 FAO estimates. The average farm size is less than one hectare (10 dunums), and many apple farmers are engaged in a variety of additional income generating activities. Apple orchards are an attractive component of a diversified livelihood strategy since they require relatively low management and labor costs during the season compared to field crops.  Lebanese apple production is modestly increasing.  Unofficial 2012 estimates were around 264,000 tons. Farmers are adept at apple production and obtain yields that are high by international standards.   There is strong domestic demand for fresh apples, as well as a strong and growing regional demand, with the fastest growing segment in the high quality higher priced new varieties. Estimates put Grade 1 apple production at only 10- 20 percent of total production, which is mostly consumed domestically and receives higher prices, while traditionally the lower quality fruit has been exported.  However, Grade 1 apples that are exported regionally to the Gulf markets receive a premium. The largest destination of low quality apples is Egypt.   Lebanon does not have sufficient production of Grade 1 apples to meet domestic demand, nor is there sufficient production of the right variety Grade 1 apples to satisfy demand of consumers in export markets. Competitiveness is further constrained by high production costs from inefficient farming and post-harvest practices, such as over application of pesticides, inappropriate transport methods, inappropriate irrigation and fertigation techniques, and below-standard cold storage facilities.  As a result, high quality Lebanese apples are more expensive in export markets than competing products from the U.S. and South America. In addition, in the traditional export markets for low quality Lebanese produce, there is indeed demand for high quality product, however Lebanese exporters lack linkages to these specific buyers and are further constrained by the poor reputation of Lebanese produce in these markets.   The below table shows strength, weaknesses, opportunities and threat in the pome fruit value chain:   Strength Weakness -          Active and dynamic players who are ready to invest in the pome fruit VC. -          Existence of potential knowledge and know how that can be built upon to upgrade production, harvest and postharvest practices. -          Long experience and history in dealing with regional markets. -          Well established system for production of certified seedling. -          High literacy level among producers. -          Existence of tissue culture lab at the “Lebanese Agriculture Research Institution - LARI”. -          Active NGO sector, which already made big investments. -          Presence of 4 Agriculture universities. -          Existence of successful lead initiative at production, cooling, packing, sorting, distribution and export levels that can be built upon. -          Healthy competitive market for agricultural inputs -          High dependency on the Egypt market more than 80%, based on consignment. -          Lack of market analyses and market intelligence capacity. -          Lebanese exporters lack linkages to the high quality buyers. -          Business decision based on insufficient analyses. -          Lack of traceability system. -          Small farm size, less than 1 hectare. -          Ineffective cooperative model. -          Lack of public sector and independent extension service system. High dependency on advice given by input suppliers. -          Poor quality seedlings and expensive germplasm. -          Old tree/ varieties. -          Low quality/homogeneity from old or/and poor managed orchards. -          Lack of knowledge and equipment to protect orchards from extreme weather. -          Poor harvest and postharvest handling. -          Old cooling, storage infrastructure and technology. -          Inconsistent supply of low-priced apples of the appropriate variety for processing. -          Lack of business and market skills among small processors. -          High production cost -          Low production per surface area Opportunities Threats -          Good climatic environment for growing Apples and Pears. -          Good reputation for Lebanon having tasty fruits -          Growing demand in the local and regional market for Grade 1 fruits. -          Shortage in supply with high quality/ homogeneous fruits. -          High possibility for establishing new market linkages to higher quality buyers. -          Geographical location of Lebanon close to the Gulf Markets. -          Presence of efficient financial scheme and publicly supported bank financing plans for agriculture. -          Existence of custom tariff on imported Pome fruits -          Bad reputation of Lebanese traders who might not be sorting and grading homogeneously, apples have the reputation for being poorly graded and thus highly variable in fruit size and color, leading to high rejection rates by buyers. -          Bad reputation of having high pesticides residue -          Unstable political and security situation in countries of current export. -          Increasing climate related incidence.   1.     STRATEGIC OBJECTIVES OF THE POME FRUIT VC INTERVENTION   Increasing production by 25% per dunum. Increasing percentage of Grade 1 by 30%. Reducing cost of production by 25% per dunum. Increase export by 10%.   All interventions should be designed towards achieving the strategic objectives stated above taking into consideration gender and the impact on the environment (Consultant need to study the PERSUAP document).   2.     ACTIVITY IMPLEMENTATION STRATEGY   The LIVCD team identified a business model that will take into consideration the pome fruit VC actors needs and the SWOT analyses addressing them simultaneously. As shown in the SWOT analyses table we can conclude that producers face several constrains to achieve good productivity, the most obvious of which is the fragmentation of production surface area coupled by the weak cooperative model resulting in a lack of an economy of scale, farmers need to buy their input and services at retail prices, low production per surface area, inducing high costs of production. The best model to be put in place seems to be gathering farmers around a “Center of Service”; referred to as “Production Service Centers”. All farmers are in need for different kinds of services at all VC levels; from good quality seedlings, to pesticides and fertilizers, to machine and equipment, to technical advice, to reliable traders and quality cold storage. Those kinds of services seem to be the common ground among all farmers; this common ground will be a high incentive to unify small farmers.   Unified small farmers will have the ability to create an economy of scale as well as powerful negotiation power with traders and decision makers in government. The “Center of Service” will be a “One Stop Shop” playing the role of a local Reference Center where farmers can find all their needs in inputs, machineries, technical advice, technology transfer and seek its support for any constrain or challenge they might face. The center can also play a major role in creating linkages to aggregators, market or to traders. The reference center mandate will be to: Gather all data related to the area of its coverage as well as will map all available resources and players. Create/ facilitate and maintain vertical as well as horizontal sustainable linkages between farmers and all service providers, input suppliers, traders, possessors. Insure access to knowledge, information and technical advice for all actors in the value chain. Create linkages with other regional “Center of Service” in the other regions. Insure economies of scale (lower purchase costs) at all VC levels in accessing quality services such as: Machinery, new technology, crop insurance, put in place a Quality and traceability system, purchase of inputs, pruning, studies, consultancies, financial services and access to finance. Insure negotiation power for producers at the market level as well as at decision making and government level. The sustainability of the Center will be secured from the variety of services provide. All “Center of Services” will be encouraged to work together to form a National Network of Cooperation. The LIVCD Project has supported the establishment and/or existing “Centers of Service”. This Center can be managed by a private sector company, a Cooperative, an NGO, a municipality or a combination of 2 or more entities. Several existing or potential “Production Service Centers” or “Centers of Service” have been identified/established, this STTA will be targeting farmers that are in the circle of those “Production Service Centers” to offer technical service in the area of developing a “Quality Management Manual” to be used for putting in place a “Quality Management System”.  MINIMUM REQUIREMENT AND EXPERTISE: In order to accomplish this work, LIVCD envisions that the Consultant will require the following expertise to accomplish the work detailed in this scope of work: A minimum of 3 years of experience in the production of “Quality Management Manuals”, such as: Global GAP, ISO22000, Integrated Production (IP), Geographical Indication, and Organic Agriculture   Submit tangible evidence of competency and achievement. The Consultant will coordinate with LIVCD team including the Pome Fruits’ Value Chain Leader, the VC coordinators, M&E team, Capacity Building and others as needed to ensure the success of the project.   4.     SCOPE OF CONSULTANCY        The scope of this consultancy is to provide high level assistances to develop a “Quality Management Manual-QMM” that is adapted to local conditions and existing agriculture practices and propose, in consultation with local partners including input suppliers and traders, the best practices and traceability system adapted to their condition taking into consideration market needs and trends.   This best practices need to be incorporated into a “Quality Management Manual-QMM” that will inform the targeted players to put in place a “Quality Management System-QMS” that will be used in the future as a base to implement a certification system such as: Global GAP and/or an Intergraded Production (IP) and/or Organic Agriculture, and/or Geographical Indication and/or a traceability system -where appropriate.   The QMM, will also be used to standardize production practices that will facilitate collective purchase of inputs at lower prices.   The “Quality Management Manual” should include as a minimum, but not limited to, Chapters to address:   Management bestpractices Pesticide management Linkage to the existing traceability system Environmental aspects Gender aspects Service and input procurement All aspects of Orchard management Harvest and postharvest   Process and conditions to join the Program Forms and Registers for farmers   NB: All forms, Register, technical sheet, or any other related documents and part of the Quality Management Manual that needs to be delivered to farmers needs to be developed in Arabic.   The target group will be:   - Different groups of farmers who are willing to implement Global GAP and or an Intergraded Production (IP) and/or Organic Agriculture and/or Geographical Indication and/or a traceability system. - Managers and technicians of existing “Production Service Centers” that are assisted or supported by LIVCD in the Region of Ainata and surroundings and Hadath El Jibbeh and Surroundings.   5.     SELECTED LOCATIONS   The Consultant will provide services in areas where the LIVCD currently works in the Pome Fruit Value Chain (VC) as directed by the VC Manager.   The work will be conducted in the area of North Bekaa-Ainata and surrounding and in the area of Becharreh-Hadath El Jibbeh and surroundings.   6.     DELIVERABLES and TIME LINE   The Consultant is expected to develop 2 Quality Management Manuals, one specific for the area of “Hadath El Jibbeh-Becharreh” and one specific for the areas of Ainata and surrounding Villages in accordance with section 4 – Scope of Consultancy during a 6 weeks period.   In addition to the above and after 2 weeks of work the consultant is expected to submit a detailed outline of the “Quality Management Manual” and a Power Point Presentation showing findings and the consultation work conducted with the local partners, input suppliers and traders...   A draft version with full annexes, drawings, forms, registers,….needs to be presented after 1 months of work showing the different component of the Manual. The Pome Fruit Value Chain Manager will review, in a time frame of 5 working days, and give comments and green light to finalize the document.   A final version of the Manual needs to be submitted at the date of the contract end. The LIVCD Pome Fruit Value Chain Manager will review and give comments and approval within 10 working days.       PAYMENT CONDITIONS The payment will be divided as follow: -          1st payment after one month of work and after delivery and approval of the “Draft Version”. -          2nd Payment after the delivery of the final version and after approval by LIVCD Pome Fruit Value Chain Manager.     8.     COORDINATION WITH OTHER ACTIVITIES Activities under the proposed subcontract should be implemented in coordination with LIVCD’s work plan for Pome Fruit Value Chain, as well as LIVCD’s cross-cutting components, including: a) Training and capacity building, b) Communication, c) Access to finance, d) Marketing and Market research, as well as e) Monitoring and evaluation. By such coordination, LIVCD wishes to capitalize on synergies and maximize impact. As well, the contractor should coordinate its action with LIVCD’s other local partners which include inputs suppliers and exporters.   9- DOCUMENTS NEEDED: Interested candidates are required to submit an updated Resume including three (3) professional references and one (1) written sample of reports of similar nature.