CONSULTANCY SERVICES ASSESSMENT OF FRUIT AND VEGETABLE VALUE CHAIN OPPORTUNITIES IN LEBANON (FOOD SYSTEM APPROACH) LBBT00967

Context and Background

Action Against Hunger – Lebanon (AAH) is exploring the possibility of supporting vulnerable economic sectors through the provision of assets and resources, improved technical and financial capacity of actors, increasing access to and use of market information.

To do so, AAH would like to focus on sustainable food systems – from a social, economic and environmental point of view, analyzing the linkages within the core system: linkages between actors across the stages of the product flow (production, aggregation, processing, distribution and consumption) and their support service providers, as well as the interactions between the core system and social and natural contexts they are embedded in. The core of the understanding would nonetheless be agricultural value chains

Currently, AAH has a basic knowledge on actors and infrastructures of the agricultural value chains in Lebanon. Some assessments with small scale farmers have been carried out in the last 6 months, yet the data is not sufficient. Data and available resources will be shared with the consultant.

Scope of the consultancy

The action intends to:

1. analyse the agriculture and agrifood sector in Lebanon;
2. identify a value chain (or more value chain sub-groups) that needs to be supported and enhanced by providing technical support to farmers to enhance production and establish related agri-food businesses to address gaps and constraints along the value chain;
3. analyse the linkages within the core system, meaning linkages between actors across the five main stages of the product flow (production, aggregation, processing, distribution and consumption) and their support service providers, as well as the interactions between the core system and social and natural contexts they are embedded in;
4. identify potential for support at any stage of the product to overcome root causes of underperformance (undesired behaviour), as well as the areas of greatest potential for improving system performance (binding constraints, leverage points).

This consultancy should therefore assess various potential sub-sectors or value chains within the agricultural sector (fruits and vegetables) using the food systems approach, to provide evidence-based information to feed sustainable development strategies. The requested study should shed light on impact, uncovers main pathways, and identifies at which stages of the chain and of the system and for which actors, potential investment and support can generate benefits, eliminate drawbacks and constraints and foster sustainability and inclusiveness.

Specific Objectives

Using the Value Chain Analysis methodology and the Food Systems Approach, the specific objectives of the consultancy will include:

• Map the existing potential value chains within the agricultural sector (fruits and vegetables). It is advisable to also follow Value Chain Analysis for Development (VCA4D) methodology considering that the selected VCs are socially and environmentally sustainable and its economic growth is inclusive: analyzing the gender and age distribution of roles throughout the chain.
• Select the most promising ones in terms of social, economic and environmental opportunities (employment opportunities, product expansion, value maximization opportunities potential for development and improvements, market viability, sustainable and inclusive growth). The technical selection mechanism must be considered also the following dimensions: Seasonality, Productivity, Proliferation, Governance.
• Conduct production and market gap analysis of the selected value chains and key features (including but not limited to identifying inputs and outputs constraints in production, main varieties, market dynamics, consumer preferences, policy, and regulatory dimension).
• Conduct assessments of demand and market conditions for products within selected value chains including analysis of input and output markets, their structure and dynamics between actors, procurement processes, and related standards.
• Identify constraints in the value chain, including, but not limited to, linkages to storage, transport, processing, packing, marketing, and financing, proposing innovative linkages for value addition and upscale marketing of the enterprises’ agriculture produce.
• Analyze and suggest the interventions that are required to make the value chain more efficient by addressing its gaps and potential, including both existing facilities/infrastructures/storing/packaging/processing units and missing ones (e.g., infrastructure, finance, human resource/skills, marketing, information, related services) as well as identify new roles and opportunities for these groups and identify how the selected value chain can be enhanced and developed considering the gender mainstreaming approach.
• Review the environmental and social aspects of the selected value chains and identify the environmental and social development needs.
• To recommend value chain development plan(s) and interventions that lead to improvement of living conditions and wage/self-employment together with a road map for its implementation.

Methodology

The methodology for this study should combine quantitative-qualitative methods of data collection. Additionally, an exhaustive literature review of secondary sources must be done to improve the analysis. To set the delimitation of the scope of the value chain study, the analysis should focus on the following items:

• Mapping of agricultural actors, inputs and outputs

The consultant will take into consideration all the data provided by Action Against Hunger, as well as any secondary data available, for producing a mapping of the actors, inputs and outputs in agricultural production in Bekaa and South Lebanon, including but not limited to size of farmers, type of farming approach (for subsistence, for market…), crop type, presence of cooperatives, types of marketplaces and type of land ownership. It is recommended to integrate the desk review with field visits.

• Screening, shortlisting, and selection of promising value chain through desk review

The consultant will review recent reliable sources for secondary information and through this review, he / she will shortlist 5 sub-value chains within the fruit and vegetable value chain with high potential for expansion and upgrading as well as with opportunities for youth and women, for a deeper assessment.

For this phase is advisable to take into consideration Action Against Hunger internal toolbox (which will be made available to the selected consultant), GIZ technical documents for value chain analysis, and the Value Chain Analysis for Development (VCA4D) methodology. Analysis should focus amongst others (and not limited to) to the following questions:

• How profitable and sustainable are the VC activities for the actors involved?
• What is the contribution of the VC to the GDP and to agriculture GDP?
• Would improving VC promote local consumption and reduce imports?
• Is the VC viable in the international economy?
• Are working conditions throughout the VC socially acceptable and sustainable?
• Do VC activities contribute to upgrading and securing the food and nutrition conditions?
• Do the VC activities contribute to improving the living conditions of the households through acceptable facilities and services?
• What are the potential damages of the VC on resource depletion?
• What is the potential impact of the VC on climate change?
• How is income distributed across actors of the VC?
• What is the impact of the governance system on income distribution?
• How is access to income generating activities distributed across the VC from gender, age and diversity perspectives?

• Presentation for validation and recommendations

The consultant will facilitate a presentation and validation of the findings from the desk review and field investigation and fill in any missing gaps through a stakeholder workshop. The final value chain selection of 3 sub-value chains can be confirmed during/after the workshop according to the new information collected. The outcome will be the elaboration of an inception report, which should also include a first stakeholder mapping, to be validated by Action Against Hunger.

• Value chain mapping and gaps identification

The consultant will analyze the dynamics of the selected value chain to identify opportunities and constraints for upgrading. The analysis should address all levels of the value chain, from the production to the processing stage. This analysis should review the full range of activities, services, and actors (suppliers, producers, processors, buyers, services providers, etc.) involved in all the activities needed to bring a product or service to the end market. The investigation will include end-market assessment (market dynamics, varieties, prices, consumers preferences etc.), business environment, socio-economic context, enabling environment (policy and legal framework, required standards and certifications), VC relationships, support products and services and business performance. The analysis should also concentrate on mapping the existing and missing infrastructures/facilities/processing units that represent a challenge in the development of the value chain. In all dimensions investigated, the consultant will include a gender and youth focus, highlighting roles and challenges of the two categories.

At this stage, the consultant will also provide a comprehensive stakeholder analysis, including relationships, interconnections, and communication between the VC actors.

• Development of a value chain development plan

The consultant will elaborate a detailed development strategy of the selected value chains to demonstrate how challenges, gaps, and constraints can be overcome, making the value chain more efficient and profitable. In particular, the consultant will identify the potential “entry points” to start engaging with enterprises in the value chain, identify the type of infrastructures, processing/storage units, facilities, and technologies that will serve the purpose, engage strategies for new or existing Income Generating Activities covering identified gaps, gaining strategies for existing VC Income Generation Activities to minimize their risks and increase profit, value-adding strategies for Income Generating Activities to a proposed solution to identified social and/or environmental issues within the VC, type of technological, institutional, social and market capabilities to be acquired/improved by the actors to increase their competitiveness and move into higher-value activities.

This phase should be following a food system approach, including an analysis of the four feedback loops, i.e.: (1) an investment loop, driven by reinvested profits and savings; (2) a multiplier loop, driven by the spending of increased worker income; (3) a progress loop, driven by public expenditure on the socio-cultural and natural environments; and (4) an externalities loop, driven by economic, social and environmental impacts within the broader food system and on other systems.

Deliverables

The consultant is expected to provide Action Against Hunger with deliverables throughout the stages of the assessment as follows:

• Mapping of agrifood actors, inputs, outputs in Bekaa and South Lebanon

- Desk review

- Short (10 pages) report on agricultural sector dynamics, actors, locations, constraints and virtuous examples in Bekaa and South Lebanon

• Screening, shortlisting, and selection of promising value chains

- Desk review

- Longlist of value chains

- Shortlist of value chains

- Inception report

• Value chain mapping and gaps identification

- Presentation of Value chain analysis findings

- Stakeholder analysis

- Value Chain analysis report with a quantitative and qualitative description of needs and gaps

• Drafting of a value chain development plan

- Value chain development plan

- Final presentation of findings

• Draft value chain analysis report

- Draft value chain analysis report including value chain development and interventions plan

• Final value chain analysis report

- Final value chain analysis report with annexes including value chain development and interventions plan

After each stage, a submission of deliverables to AAH is required for validation and agreement on steps forward. The findings of each stage will inform the next stage.

Timetable

The consultancy is expected to be completed within 2 months, starting from Mid-August 2023, and to be ended latest by end of October, 2023 (this shall include the submission of the final reviewed and approved value chain analysis report), the following activities of the assignment shall be considered with specific details in the consultant work plan according to the following schedule:

1. Mapping of agrifood actors, inputs, outputs in Bekaa and South Lebanon: 7 days
2. Screening, shortlisting, and selection of promising value chain: 14 days
3. Value chain mapping and gaps identification: 21 days
4. Drafting of a value chain development plan: 14 days
5. Submission of draft value chain assessment report: 5 days
6. Submission of final value chain assessment report: 2 days

Profile of the consultant

Education & Qualifications & Experience

• Graduate degree in agriculture required, preferably with specialization in agribusiness (if consultancy firm, agronomist required among the team members).

• Solid experience in applied research and development, studies development, and evaluations (attach evidence and number of studies and publications)
• Solid, direct experience in the fields of agriculture and business development.
• Practical experience in conducting value chain analyses in the Levant region, preferably in Lebanon.
• Good understanding of agricultural and rural development from both development cooperation and private sector perspective.
• Good understanding of agribusinesses and agricultural value chain trends and direction, including major areas of interest and intervention.
• Strong knowledge of the stakeholders in the agricultural sector.
• Demonstrable knowledge of pro-poor value chain development using participatory methods, good knowledge of the food systems approach.
• Strong analytical and interpretation skills
• Excellent communication skills.
• Excellent reporting skills (Sample required)
• Fluent in Arabic and English
• Respects Action Against Hunger Charter and Code of Conduct.

Intellectual property

The ownership of the draft and final deliverables belongs exclusively to Action Against Hunger. The consultancy firm OR consultant is not allowed, under any circumstances, to share the study document itself, or publications related to the document or with external party/ies before the final endorsement and release by Action Against Hunger.

DOCUMENTS TO BE INCLUDED WHEN SUBMITTING THE OFFER:

Consultants shall submit the following documents/information (Electronic Copy) to demonstrate their qualifications:

A: Technical offer (in English):

• Executive Summary, explaining why the applicant is the most suitable for the work.
• People of the consultant CVs; with an indication of 3 references as well as the permanent e-mail and phone contact (maximum 4 pages CVs).
• Team structure
• Portfolio of Experience: provide lists of similar (and commentary) consultancies, etc., to assess the competencies and skills of the applicant.
• Methodology: provide the working methodology and action plan with a timetable of activities.
• Samples of 2 Value chain analysis reports.
• Company registration documents and ID of the owner/, Tax registration Certificate (VAT), MOF registration.
•  Bank details
• Offer Validity (minimum of 90 Days)
• The supplier agrees to hold a valid civil liability insurance policy for the entire duration of their contractual agreement with Action Against Hunger.

B: Detailed Financial proposal (expected budget): The proposed budget should reflect the following:

• Cost: Action Against Hunger will assess the prices proposed, as compared with the cost per item, the demonstration of experience, and quality of work, to ensure that the prices are reasonable.
• The Consultant is requested to submit a budget breakdown for each of the abovementioned tasks. The budget breakdown should be attached to the financial offer.
• The consultant acknowledges the amount of work he / she requires to achieve the above-mentioned tasks.

C: Logistics/Facilitation Notes:

• The consultant will be responsible for doing all preparations, facilitations needed for conducting the assessment and for delivering all the outlined tasks.
• Movement and transportation of the consultant to the identified entities for the assessment or to any required places will be the consultant’s responsibility and at his/her cost. 
• Arrangements, preparations, and costs of workshops required for the assignment will be the responsibility of the consultants.
• It is expected that the consultant will arrange his/her own laptop and software for all activities.
• The consultant should provide a valid civil liability insurance policy for the entire duration of their contractual agreement with Action Against Hunger .
• Action Against Hunger could conduct close field monitoring and follow-up on the field works of the consultant, which includes accompanying & monitoring the consultant in the visits.

Please submit your proposal no later than August 5th to the following address: procurement-bt@lb.acfspain.org .

Selection of the offers

Offers received from potential consultancy firms OR consultants will be analyzed and scored as described below:

Company/consultant profile: 40%

Methodology: 40%

Financial proposal: 20%

Total: 100%

Candidates scoring at least 70 out of 100 for the technical evaluation will be considered eligible for the financial evaluation.

PAYMENT

The payment will be done according to the installments below:

• • 40% upon reception of the inception report
  • 60% Once she/he has delivered all the deliverables.

General

• Submission of the proposal shall be deemed as an acknowledgement by the consultant/service provider that all obligations stipulated by this ToR will be met and unless specified otherwise, the bidder has read, understood and agreed to all the instructions in this ToR .
• Action Against Hunger is under no obligation to award a contract to any bidders as a result of this ToR .
• Action Against Hunger does not bind itself to award a the contract to the lowest offer or any offer and reserves the right to accept the whole or part of the offer .