INTRODUCTION
Shelter For Life International (SFL) is an international faith-based relief and development organization with over 30 years experience in providing sustainable development and humanitarian assistance to post-conflict countries around the world. We are currently operational in Afghanistan, Liberia, and Senegal, with Headquarters located in Minnetonka, MN. SFL is implementing a USDA-funded Food for Progress (FFPr) program which addresses the cashew value chain in Senegal, The Gambia, and Guinea-Bissau. SFL is issuing this Request for Proposals (RFP) to conduct a value chain study of the cashew sector in the project’s target geographic areas, which are in Senegal, The Gambia, and Guinea-Bissau.
To view the full RFP on SFL's website, click here.
BACKGROUND
Under USDA/FAS Food For Progress (FFPr), SFL is implementing a six year program in Senegal, the Gambia, and Guinea-Bissau (sometimes referred to as SeGaBi) with a goal to develop and upgrade value chain linkages necessary to support an integrated regional trade network for the cashew value chain. The program will address these linkages in four program components: (1) market infrastructure, (2) financial services, (3) market access and linkages, and (4) on-farm practices. The four components are supported by a data platform based in Salesforce, called LIFFT-Up. The “Linking Infrastructure, Finance, and Farms To Cashew” (LIFFT-Cashew) program aims to construct durable trade infrastructure, increase access to financial services, organize and train smallholder farmers to increase production and bargaining power and link them to processors (link farmers to a secure long term market), build the capacity of local processors to add value to kernels, link local processors to market players internationally, and train local processors on best practices on processing in the SeGaBi cashew production zone of West Africa. As a result, the program will benefit smallholder farmers, a range of processors, and a variety of other businesses along the cashew value chain. The three main goals of the project are the following:
Increase or maintain the outturn quality of raw cashew nuts (RCN)
Promote collective sale of RCN through producer associations
Maximize processing of RCN within SeGaBi region
SFL will conduct a value chain study each year during the life of the project. This will allow SFL to observe trends and changes over time and make programmatic adjustments as necessary. The first value chain study was conducted and completed in March of 2018. This report had a wide range of basic information and recommendations for the cashew sector in the SeGaBi region,[1] not all of which may be addressed through this project.
SCOPE OF WORK
Purpose
The purpose of this Cashew Value Chain Study is to update the national and regional statistics (production, processing, sales of RCN and kernel, by-products) for the SeGaBi cashew sector, evaluate and quantify business opportunities along the value chain, and update and analyze specific policy trends for the region. The study should particularly look at the challenges and opportunities in the key program components: infrastructure (storage), financial services, cooperatives and associations (and their access to market, including transportation from farm to buyer/buying point), service providers, processing, investment opportunities, agricultural practices, market information, and policy.
Audience & Dissemination
The Value Chain Study report will benefit the LIFFT-Cashew program team, but its audience includes the wider cashew sector, such as potential investors or policymakers. As such, the report should be written as a public document. The report will be organized in such a way that relevant sections can be shared with stakeholders who are interested in specific information. LIFFT-Cashew program will provide a Table of Contents for the report during the inception phase. This table of contents will be discussed and validated by mutual agreement with the consultant. The report should also include a PowerPoint presentation and three to five shareable factsheets in English, Portuguese and French.
Methodology
The studies will employ a value chain approach and must be demand-driven, not only cashew kernel demand but including demand for other cashew-related products and services. The study should incorporate quantitative and qualitative data, supplemented by secondary data sources where necessary. Quantitative data collected about plantations, nurseries, cooperatives and associations, processors, sales of RCN, volume of financing by banks and other cashew-related data must be submitted along with the report in a pre-approved format. The fieldwork for a large part of this study must be conducted during the cashew harvest and sale season in order to observe the local RCN market in action.
Respondents to this RFP should specify their proposed methodology, but it should include a wide range of interviews with various value chain actors and key stakeholders, and it should include a mapping of the cashew value chain in the target region. Value chain actors include farmers, input suppliers (such as nurseries), aggregators and middlemen, cooperatives and associations, processors, exporters and buyers, financial institutions, investors as well as related businesses and organizations such as transporters, equipment manufacturers, and trade associations. Government, including extension workers, and nongovernmental organizations are also key stakeholders. As much as possible, the study should document changes in cashew-related policies from each of the three governments, as well as the role of The Consultative International Cashew Council (CICC) in harmonizing policies and promoting regional trade of cashew.
The study will allow the project to have a clear idea of the interrelationships between the different actors in the value chain in each country. In addition, the study will propose a regionalization strategy for the cashew value chain. This requires an in-depth study of the policies in each of the three countries concerned.
Key Study Questions
- The following questions should be addressed in the research and report:
- To what extent is it possible to develop organic cashew market and certification in the countries? What are the opportunities and challenges for establishment of national certification program that conforms to international standards (organic and non-organic cashew)?
- What services are needed and provided by service providers along the value chain for each value chain actor? What are the main challenges and opportunities?
- Is there enough storage capacity in the three countries to satisfy the needs of the value chain actors and what steps should be taken to make them efficient and sustainable?
- What is the capacity of cooperatives and associations in taking the role of intermediaries and organizing collective sales to processors and exporters of RCN?
- Is the local infrastructure and legislation supportive of the establishment of local processing? What are the main obstacles that must be overcome?
- To what extent can kernel processors maximize their profitability through sales of other products? Which other cashew by-products can be processed and marketed in next five years?
- What national government policies and strategies are critical for regional harmonization, support quality improvement, and increase processing capacity in the region? What are ways to improve the regulatory environment in the region?
- What are the constraints related to collecting data on production, processing and exports? What reliable market information systems are available in the region and what value do they bring for the sector?
- What are the volumes of production, processing and exports of cashew products and by-products during this campaign?
- Which financing facilities (loans, equity investment, loan guarantees) are most appropriate for use in the countries taking into consideration existing bank products?
Key Activities of Study
Activity 1 - Value Chain Analysis
Value chains encompass the full range of activities and services required to bring a product or service from its conception to sale in its final markets—whether local, national, regional or global. Value chains include input suppliers, producers, processors, storage owners, cooperatives and associations, investors, financial institutions and buyers actively supported by a range of technical, business and financial service providers.
The Value Chain analysis looks at the whole process of effective utilization of resources to create a competitive advantage that would provide a lower cost and better improved profit margin for cashew-related businesses in the region, particularly processors. Value addition tends to create the following:
- Economies of scale
- Capacity utilization
- Linkages among activities including vertical integration
- Learning process
- Interrelationships among business units
- Marketing outlets
- Public-private partnerships
- New technologies and innovations
- Youth and women inclusion
- Transparency in the supply chain
The main purpose of this intervention is to carry out an analysis and assessment of cashew value chain, including the challenges and opportunities for each actor of the value chain (producers, cooperatives and associations, service providers, processors, exporters, financial institutions, investors, Government). This will help SFL develop a model for strengthening major businesses, as well as stabilize innovations that were introduced by the project and its partners.
The study should provide analysis of challenges and opportunities for each of the cashew value chain actors named above and provide recommendations for each of them for the short-term and long-term, taking into the consideration the project’s goals and objectives.
Activity 2 - Cashew Census
In addition to the value chain analysis, the selected consultant will also collaborate with SFL to develop and conduct a cashew census in Senegal, The Gambia, and Guinea-Bissau. While SFL will collect the majority of the data for this census, the consultant is expected to analyze and incorporate this data into the final report. Below are the key activities of the census:
- Develop and conduct a census of cashew producers and processors in all three countries, modeled on USDA ag census.
- Provide geographic mapping of all producers and processors.
Deliverables and Timetable
The fieldwork for the Value Chain Study must be conducted during the 2020 cashew market season. Based on lessons learned from previous studies, the second study will be about 16 weeks in length, including at least 8 weeks of fieldwork in the SeGaBi countries. All fieldwork for this study must be carried out by the end of June 2020. At least one key SFL staff member per country will participate in the field work. This will increase the level of learning for the project team. The details will be finalized in the inception phase.
The following table lays out the key activities and associated deliverables for this study, along with the estimated timeframe.
Inception Period (2 weeks)
- Description of basic context based on project documents and literature review*
- Finalized methodology for study
- Workplan / timeline
- Data collection tools
Field Work (8 weeks)
- Quantitative and qualitative data gathering
- Observation of cashew markets
- Mapping and analysis of value chain actors
- Research and quantify business opportunities along the chain
- Network analysis of value chain
Stakeholder Workshop (1 day)
- Conduct a one-day workshop in the field (preferably Ziguinchor) to review findings and assumptions with key SFL staff and stakeholders. This will help triangulate findings and provide additional insight.
Draft of Cashew Value Chain Report (3 weeks)
- Draft report in MS Word format for review and feedback; should include all the components described for the final report. After submitting to SFL, a verbal debriefing session should be conducted to discuss (via phone or skype)
Final Version of Cashew Value Chain Report - English (2 weeks)
- Narrative description of the value chain
- Mapping (visual depiction) of value chain
- Network analysis of value chain
- Key weaknesses in the value chain
- Recommendations for the program
- Statistical information for each country, broken down by appropriate administrative districts (varies in each country)
Raw Data (submit with Final Report)
- Production
- Sales (quantity and value)/Export
- Profitability forecast (nurseries and other businesses including agricultural services)
- Processing (volume and value)
- Consumption (local and international)
PowerPoint Presentation - French, Portuguese and English (1 week)
- Presentation of a summary of the value chain with key findings which can be shared externally – both a French and Portuguese version of the presentation must also be submitted
Supplementary Materials (1 week)
- Translation of approved Final Report into French & Portuguese
- 3-5 factsheets highlighting key business opportunities in English, French and Portuguese
SELECTION CRITERIA
The consultant or consultancy firm will be selected based on the following criteria:
Expertise and knowledge of the firm or individual (40%)
- 5+ years of experience and demonstrated knowledge of cashew sector
- 5+ years of experience and demonstrated knowledge in West Africa
- Deep understanding of value chain / experience working in value chain projects or assessments
- Clarity of thought processes and writing style, as demonstrated in the proposal
- Fluency in English and working knowledge of French
- Ability to communicate in local languages and knowledge of Portuguese is desirable
- Existing contacts and knowledge of the local cashew sector
Proposed approach and workplan (30%)
- Appropriateness of proposed methodology
- Proposed timeframe
Cost competitiveness (30%)
- Clear cost proposal, including justification for each item
- Value for money; cost-savings with quality deliverables
RESULTING CONTRACT
SFL will enter into a firm fixed-price contract for this value chain study. The fixed-price contract will be payable on specific deliverables outlined in this document which will be attached to the contract as a Scope of Work (SOW); the payment schedule associated with the deliverables will be determined during the finalization of the contract with the selected applicant.
To view the full RFP on SFL's website, click here.
How to apply:
Please see the proposal submission guidelines in the RFP on SFL's website here.
Interested applicants should submit a proposal for the work described above to info@shelter.org with the subject “**RFP-5302-008**”. Proposals must be submitted electronically by email; paper or faxed applications will not be accepted. The proposal must be in English and should include the following:
Detailed technical proposal which includes the following:
- Description of methodology of study
- Proposed workplan, including timeframes
- Description of past performance of consultant(s)
Financial proposal:
- Itemized budget
- Narrative explanation of line items
- All travel and logistical costs should be covered by the consultant’s budget
References from applicable organizations or companies (prefer at least two references)
SFL reserves the right to select any or none of the applicants submitted. Proposals must be submitted by March 29, 2020 at 5:00pm CDT, as outlined above. If SFL does not confirm receipt of your proposal, the applicant may follow-up on its status by email. SFL will notify the selected consultant in writing via email. Other applicants will be informed of the decision by email.
If you have any questions about this RFP, you may direct them to the email address info@shelter.org.
Applicants will be notified of selection decision on April 3, 2020. Final award is subject to the terms and conditions included in this solicitation, as well as successful final negotiations of all applicable terms and conditions affecting this work.
Please see the proposal submission guidelines in the RFP on SFL's website here.