Consultancy for developing of Business Model for upscaling of seedling marketing
DAI Europe, together with consortium partners First Consult; Enclude; and ITAD, is managing the UKaid-funded Enterprise Partners (EP) which aim to support and transform the private sector and Ethiopia’s continued economic growth over 2013 – 2020.
EP is utilizing the Making Markets Work for the Poor approach (M4P) to address the poor, and especially women, in sustainable economic enterprises that create jobs and improve incomes. The two main pillars are:
- The Finance Group is expected to achieve the outcome of increasing investment levels in the Ethiopian economy, particularly for growth-oriented small and medium enterprise.
- The Agro-Industrial Group is expected to achieve the outcome of increasing returns on investment (productivity) and investment levels in the identified sectors of cotton/textiles, livestock/leather and horticulture, in order to achieve the impact of creating jobs and raising household incomes. Additionally this pillar will incorporate the promotion of climate change awareness and addressing women’s economic empowerment.
Background of specific to this assignment
Fruits and Vegetables (FAV) is one of the priority sectors of EP AIG. EP has pursued the FAV sector scoping including elaboration of the major constraints and respectively outlining options of intervention areas. Consequent to that, EP has engaged in addressing of critical constraints through market systems approach with potential partner actors. One of them being improving the productivity of FAV farmers, specifically smallholders, through improving access to quality seedlings. To that purpose, EP has intervened with piloting of Onion seedlings marketing Business in partnership with a commercial farm, Jeju Plc, in the upper Awash area around Merti locality. As an outcome of the one year piloting exercise, Jeju has witnessed lucrativeness of FAV seedlings marketing evidenced by increase in the seedlings sell volume from initial 1500 to 20,000 beds/year; an increase in number of seedling customers from 100 to 450 and most of all, the indication of need for quality seedlings evidenced by a 25% higher price fetched by Jeju seedlings as compared to others supplied locally. Driven by the above evidenced benefits as well as the opportunity foreseen with the big population of smallholders in the country (counted to over 16.5 million) Jeju has determined on expanding of the seedling marketing business. During the initial phase Jeu has plan to expand into the most accessible FAV production areas of Upper Awash and central rift valley. For that purpose and beyond, Jeju has requested for EP partnership to work on the business model to expand its business. Other than Jeju, EP has come across other commercial farmers (Kifle Bulo Apple Seedlings Producer (KBASP), Florensis, Solagrow, etc.,) who are engaged in marketing of FAV seedlings and some (Ethioveg Fru and Jara) interested in seedling marketing business. However, none of them has dared to venture into the business in broader and diversified manner threatened by the risk in the market.
On the other hand, the Government of Ethiopia is refocusing on commercialization and industrialization of the FAV sector envisioning that it will play key role in the National Agricultural transformation. Prominently, as realization of the national growth and transformation plan II (GTP II) number of strategic policies and plans have either been realized, or currently being drafted to that effect, all centring on commercialization and industrialization of the FAV sector. To that effect the Ethiopian government is to develop number of Integrated Agro-Industrial Parks (IAIP) with satellites of Rural Transformation Centres (RTCs) each offering enormous market opportunity for FAV producers, majorly the smallholders. However, to catch-up with the industries demands improving the productivity and quality of the FAV production becomes imperative to satisfy the envisaged purposes of the IAIPs.
In response to the above two scenarios: Commercial seedling producers’ ambition and the bigger national plan, EP would like to support development of a sound business model for FAV seedlings marketing that will be consistent and coherent with the national agricultural transformation strategies.
2. Purpose of the assignment
The purpose of the assignment is to develop a sound Fruits and vegetables (FAV) seedlings marketing Business Model (options) that is:
I. Supportive to the national agricultural transformation strategies;
II. Responsive to EP’s strategic objectives of improving income and generating job for the poor (75% women) and green investment promotion and
III. Founded on national and international experiences;
IV. Founded on pilot experiences of Jeju Plc.
3. Specific Tasks
3.1 Study and understand strategic interests of EP relevant to seedlings marketing business;
3.1.1 Grasp EP’s FAV sector strategy and interventions relevant to the assignment.
3.1.2 Compile relevant learning with the ongoing Seedling marketing interventions (Jeju, Ethioveg fru, Jeju).
3.2 Map and compile country profile of FAV seedling production and marketing experiences.
3.2.1 Map & list country wide representative seedling marketing practices and practitioners.
3.2.2 Compile respective profiles/categories and comprehend the strengths, weaknesses, opportunities and threats accordingly.
3.2.3 Map opportunity based on crop demand in different geography.
3.2.4 Summarize and analyse the findings.
3.3 Identify significance of seedling marketing Business in the country’s Agricultural Transformation and industrialization strategies.
3.3.1 Identify regulatory and financial policies relevant to seedling business.
3.3.2 Analyse the opportunities and challenges.
3.3.3 Layout role of RTCs (Rural Transformation Centres) in respect of seedlings marketing.
3.4 Identify and consider adoption of international experiences (technologies, regulatory and financing frameworks) relevant for scaling up of FAV seedling marketing Business in Ethiopia.
3.4.1 Identify some best case examples of seedling business in other countries.
3.4.2 Elaborate the challenges and opportunities in Ethiopian context.
3.4.3 Draw and propose adoption strategy
3.5 With inputs from the above listed tasks and others deemed to be necessary, as well as own expert knowledge, develop FAV Seedlings Marketing Business Model options including modalities of promoting them considering the M4P development approach.
3.6 Facilitate validation working session with EP staff and other relevant actors.
3.7 Produce final version of the Business Model including its promotion strategy.
Description of each deliverable
|1||Inception report outlining the methodology of the task||By August 31, 2016|
|2||Submission final report with FAV seedling Marketing Business Model/s||By October 05, 2016|
5. Timeframe and Inputs
The assignment is to take place during the months of August, September and October, within August 16 till October 14, 2016. The Following man-days are required, but the consultant is required to develop a detailed work plan and refine the deliverables to be agreed by the FAV team:
Deliverables or Milestones (MS)
|Inception report outlining the methodology of the task|
|Final report with FAV seedling Marketing Business Model/s|
Total man-days input
- At least 20 years of relevant experience, advanced degree.
- Highly specialized seedlings management and marketing.
- Knowledge with FAV Horticultural value chains administration and financing; developing business services in agriculture; practical work experience with market systems (M4P) development approaches; private sector development and with strategic and analytical competencies.
Closing date: Aug 19, 2016
Only short-listed applicants will be contacted and applications that do not meet the minimum requirements and doesn’t follow the application process will not be considered. Interested applicants should submit their application through e-mail as follows:
Please clearly mark in the subject line ’
’’ and email your CV and application letter to firstname.lastname@example.org . Please note that ONLY CV and application letter (not other testimonials) are required to apply at this stage.
No phone calls please.