TERMS OF REFERENCE

OUTGROWERS DEVELOPMENT PROGRAM IN LIVESTOCK & FEED

Location: , Contract Term: FIRM CONSULTANCY-SHORT TERM

A. PROJECT BACKGROUND AND OBJECTIVES

About IFC IFC—a sister organization of the World Bank and member of the WBG—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY20, IFC made $11.1 billion in long-term investments from its own account and mobilized $10.9 billion from other investors, supporting 282 long-term finance projects in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org

About IFC Sustainable Protein Advisory Agribusiness is one of the priority sectors for IFC because of its potential for broad development impact and especially strong role in poverty reduction. We combine investments and advisory services to help the sector address higher demand and escalating food prices in an environmentally sustainable and socially inclusive way. Among the Advisory Services (AS), Sustainable Protein Advisory provides a range of standard client issues and, with time, develop a tested toolbox of solutions, and a trusted network of external experts that can work alongside IFC staff to deliver quality service to clients in meat, dairy, fishery, feed, and poultry.

About The Project IFC is currently implementing Luna Livestock and Out grower Project that aims at establishing a semi- intensive goat finishing facility that can supply the Luna Export Slaughterhouse, IFC advisory client, with 1,000 goats & sheep for processing per day. The client is currently establishing the Luna Exports Animal Farm (LEAF) for feedlotting and forage production, located in northern Ethiopia, Southern Ethiopia, at Bori kebele of Woreda (district) and planning to work with minimum of 7,000 small holder farmers, pastoralists and agropastorals. The feedlot is projected to have a final livestock carrying capacity of 250,000-300,000 sheep and goat mainly but also small portion of cattle per annum over 4 years’ time. Animals from the LEAF project site will be supplied exclusively to Luna Export Slaughterhouse, located 75 km from Addis Ababa and exporting on a regular basis to GCC countries in the Middle East. The farm will have the capacity of supplying at least 1000 animals to the slaughter house per day.

The Client was having similar project in Tigray (Raya Azebo Woreda) where it reached 1,000 small holder farmers were provided awareness, training and coaching, and provided with some planting materials in 6 kebeles. Programs have been initiated within the targeted irrigated and rainfed kebeles. Yet, the client is now relocating its operations to SNNPR region, to South Omo Zone to work on 1127 Ha of land for semi intensive ranch, which is currently under discussion with the regional government.

The client will be working on two complementary results of commercializing animal feed and well-conditioned animals (Sheep, goat and cattle ) to the size of not less than 15 kilograms and not above 26 kgs for goats and above 20 kgs for sheep; not less than 170 kilograms for cattle and 70kg for calves.. The project will be working with 7,000 farmers, pastoralists and agropastorals (at least 30-40% women) in 4 woredas of South Omo Zone and Konso areas (annex 1). Besides, the project is working on additional initiatives would strengthen the outgrower development through radio programs together with Farm Radio International, extension video development with Zeleman Communications, and further early stage initiatives on animal health capacity building.

B. OBJECTIVE OF THIS ASSIGNMENT IFC is looking for Out Grower training and coaching firm “consultant” to start the outgrower program in Bena Tsenmay, Hammer, , and districts of South Omo Zone and Konso where at least 7,000 farmers, pastoralists and agropastorals (out growers) (a) adopt good animal husbandry practices, (b) produce proper animal feed for themselves and supply to Luna’s feedlot (estimated around 10,000 ton of green feed and types of animal feed) over 2-3 years , (c) deliver animals (around 50,000-100,000 mainly goats/year) that meet export market requirements

C. SCOPE OF WORK The consultant will perform many functions related to the following activities, including, but not limited to: 1. Selection and targeting and grouping into CIG a. In each kebele out grower groups for sheep and goat will be established. Depending on the number of interested HHs more than one CIG could be established in each kebele. b. Identify HHs with irrigation access in Dasenech, , Nyangatom and Bena Tsemay woredas, and establish them into feed out grower groups. I am concerned about this emphasis on irrigation. It is not necessary for forage production. Especially when arrangements are made for longer-term storage within the Luna facility, it will be much more cost-effective to grow forage seasonally, rather than try to ensure year-round even supply through irrigation. Also, you are likely to encounter similar problems to those in Mahoni with irrigation… with alternative crops providing much higher income potential. c. Target at least 7,000 households in 87 kebeles of Bena Tsemay, Hammer, Dasenech and Nyangatom districts as well as Konso areas respectively over the next 2 years. The targeted kebeles should be both rainfed and irrigated areas. (Annex 1). d. Prepare proper data base for each targeted household on livestock potential, household income, livestock practices, market options, cur-rent income from livestock, distance to the LEAF for feed and Shoat production using proper tool. Organize proper data base of targeted households throughout the project lifetime using IT tools. The data base will flexible at the time of the startup and grower semiannually. e. Proper selection and group-based clustering of 7000 potential Outgrower (30-50% will be Women) for both improved stock production, for forage supply as well as animal supply. f. Selection of model farmers, pastoralists and agropastorals with large hectares of land that can be used for model animal husbandry and production of planting materials (e.g. at least 2-3 model farmers, pastoralists and agropastoral, commercial farmers per woreda) g. Facilitate into appropriate grouping modalities (e.g. common interest group, clusters or cooperatives)and provide all the technical support required and bylaws to be done.

2. Organize consultative workshop a. Create wider awareness campaign (zone, woreda, and kebele level) on the proposed investment, establishment and functioning of the out-grower program, benefits the project brings to woreda, kebeles and in general its contribution towards modernizing the livestock market in the area. before starting any training and coaching program. b. Organize stakeholders meeting with kebele administrators, clan leaders, and trade and market development office heads of each woreda, administrators of the woreda.

3. Training materials

a. Review the existing training modules and training methods of outgrower development program held in Tigray (Raya Azebo woreda) and customized to the lowland areas (pastoralist and agropastoralist context) • The consultant is recommended to adopt already existing training materials of the Ethiopian government or other development organizations materials (to reduce reinventing of the wheel) b. Prepare “luna- good agricultural practice training Manuals” or fact sheets, ID charts and posters and “Luna-business skill training module” customized to the languages of the respective districts for distribution. • The modules should focus on the women’s role and participation in the value chain. • Focus on the financial literacy, simple business plan, record keeping (financial and production and reproduction record keeping) and market requirement of Luna for outgrower. • The training should closely into the inherent understanding of the immediate benefits of cost-effective production improvement, and improved animal health of the community as well. • Good husbandry practice modules should include mating systems and technique. selection and culling; Kid management (kidding seasons, kid rearing, kid housing, feeding kids, health care, weaning, castration); Feed requirements-nutrient and sources; Fodder production and conservation (different fodder crops, their production techniques c. Prepare proper extension and communication materials to be shared with small holder farmers, pastoralists and agropastorals (Laminated brochures, pictures, simple posters, calendars etc.) d. Distribute training documents/aids including posters, leaflets, notebooks for farmers, pastoralists and agropastoralist takeaway home; greater focus for high livestock population kebeles.

4. Facilitation of Training to out growers a. Selection of training venue/centers i.e. FTCs, schools, lead pastoralists, agropastoralist, farmers compound, including demonstration, coaching etc.) and actual delivery of training using different techniques.

b. Provide planting materials to smallholder farmers, pastoralists and agropastorals who are part of the outgrower program so that they can start piloting the different learnings. i. The consultant should source the planting material for the outgrower program. It is recommended to source the planting materials from model farmers, pastoralists and agropastorals within the district and or Luna farm; research centers and World Bank financed projects such as RLLP and other development partners such as RPLRP, LPLP, Omo Delta, Vita, MSF-VLR, Farm Africa. ii. It is crucial to start with the best genetic material, and to ensure that any seed purchased from local producers is of high quality iii. The cost of planting materials as well as distribution to respective farmers, pastoralists and agropastorals should be included in the financial proposal) • The consultant is expected to check with the two potential feed producer groups that are suggested to be main sources of feed for the proposed investment project. Agro pastoralists in Nyangatom, Dasenech and Bena Tsemay woredas and few kebeles of Hamer woredas have experience in the production of improved feed crops under irrigation. For irrigated fodder crops production, Dasenech and Nyangatom woredas have high potential as Omo River has big capacity to cultivate large areas of land compared to Bena Tsemay and Hamer which use Woito River (10 kebeles in Bena Tsemay and 5 Kebeles in Hamer use woito river). c. Ensure training modality of bringing family member to the training and coaching. Need to identify areas where there is already some relevant production improvement and use those areas for training/exposure visits. d. Select and nurture model pastoralists and agropastorals per kebeles to be used as a farmer’s, pastoralists and agropastorals learning centers or center of excellence for good animal husbandry practices as well as production of large-scale planting materials for other farmers (30-40% should be women). e. Conduct full fledge training for feed out growers as well as livestock out growers a total of – 7,000 out growers on forage production, conservation, and utilization; including bailing techniques using manual baler machine; Need local models before intensive training is feasible. Housing; Feeding; Animal Health; and Breeding using video, power point, practical field days, text messages, etc. The consultant is expected to target at least 20-30% of out growers for feed similar comment as before and the remaining for the livestock. The training should be tailored accordingly. 5. Coaching (Continuous follow up) a. Conduct one to one as well as peer coaching of out growers on feed and livestock production. i. Each farmer, pastoralist and agropastoral should be visited at least every 2 weeks and updates on respective farmer, pastoralist and agropastoral will be documented. ii. Coaching sessions should be documented very well using a proper tool. b. Organize demonstrations on (a) good husbandry practices (b) forage production at irrigation farm and rain fed areas; (c) market requirements of Luna (goat specifications) c. Organize exposure visits, farmer, pastoralists and agropastoral field days and or peer learning events per kebele or district. The visit could be with in the same woreda or cross woreda.

d. There may be a need for exposure visits outside the targeted areas, at least initially.

6. Facilitation of market linkages with Luna a. Review the current contract modality of working with LEAF b. Facilitate contractual agreement (e.g. price, collection and delivery point and related cots) between the out growers, and LUNA on small ruminants and feed based on the Company Specifications for Input and Output (annex 2) c. Support farmers, pastoralists and agropastoral in the actual delivery of feed and animals by monitoring the delivery and account volume and value of delivery, sales of farmers, pastoralists and agropastoral. Would need to assess the suitability of LUNA feed facilities eg to receive and dray/ bale/ store forages supplied from farmers. 7. Facilitate at least 2 stakeholder meetings with community, government and stakeholders at central town and or learning events in a year. 8. Coordinate and capitalize on/ with other current projects undertaken on small holder farmers, pastoralists and agropastoral (e.g. farmers radio program, extension video development, Vet capacity building program) .

Note: All intervention should target a minimum of 30-50% women that addresses women’s timing and location. Female headed households should be encouraged to be pear to peer leaders or mentors. Modules should be more of basic fact sheets, illustrations, posters, considering literacy and skill /technical levels rather than lengthy “manuals”. Bidders are encouraged to propose innovative way of extension delivery mode, including AgTech solutions.

D. SPECIFIC OUTPUTS EXPECTED FROM CONSULTANT • Inception Report within 10 days of contract agreement including detail targeting per woreda, volume of sales-feed and animals expected, proposed training and coaching programs, etc. • Project logical model and result framework for 2 years to be used as project tracker over the key achievements of the project. • Proper household tracker: excel based or cloud-based Monitoring tool is recommended and delivery of monthly update reports. • Final Training and coaching implementation plan for 7,000 and more farmers, pastoralists and agropastoral detailing training sessions, targeted households, locations, trainer, coaching sessions, expected participants per sessions, source of planting materials, volume of planting materials to be provided per farmer etc. Need to define mechanisms for streamlining producer- producer supply of planting materials and exchange of technical information. • Pre assessment and post assessment of each outgrower: Basic information pre and post project of each targeted households including number of animals at hand, breed, vaccination program, purchasing prices, status of their husbandry practices, sales volume mainly from livestock, key improved practices etc. • Properly branded training and coaching materials, extension communication materials including illustrations in English and translated in respective languages (at least 4 languages). • Full fledge training and coaching report by end of June to alight with the IFC semiannual reporting system. The report should be with the log frame and result framework of the assignment including numbe of smallholder farmers , pastoralists and agropastorals reached, training sessions delivered, volume of fodder provided. • Stakeholder meeting documentation: The consultant is expected to deliver at least 3 minutes of the stakeholder workshop or learning events. • Periodic reporting: the consultant shall send quarterly reports depending on the date of signing the contract.

E. SPECIFIC RESULTS EXPECTED OUTCOMES FROM THE ANIMAL FEED PRODUCTION & MARKET LINKAGE

- The consultant will have to commit in delivering over 2 years the following key milestones - The transaction volume between Luna and outgrower (i.e. small holder farmers, pastoralists and agropastorals, model farmers, pastoralists and agropastorals, other aggregators) will be $500,000 engaging at least 7000 outgrower. - Up to 100,000 animals will be supplied to Luna over 2 years of the assignment.

- Outgrower farmers, pastoralists and agropastorals should deliver up to 10,000 tons of green feed. The consultant will be responsible to coordinate the delivery of the fodder and animals in coordination with Luna. Supply of green feed on contract is very complicated, given the very wide fluctuations in dry matter content.

All reports to be in MS Word Format and presentations in MS PowerPoint in English language and submitted by email. All field visits and discussion with the respective stakeholders to be well documented and be part of the final report.

Payments will be made upon receipt and acceptance by IFC of Consultant’s payment request against stated deliverables. The Consultant will report to operation officer based in Ethiopia.

F. QUALIFICATION CRITERIA

- Relevant experience requirements for the firm: The firm should have profound experience working in agriculture, mainly in livestock sector with large number of small holder farmers, pastoralists and agropastorals in provision of training and coaching (capacity building); facilitation of agricultural products between private sector and small holder farmers, pastoralists and agropastorals; development of training program;

- Relevant team members experience - The consultants should have a mix of expertise with the following areas: animal science, agronomy; animal nutrition, irrigation and water resource management; agricultural engineering, agricultural economics, business management and nutritionist and M&E specialist.

The team should be led by a team leader with a master’s degree and minimum of 15 years’ experience and profound knowledge and experience in the livestock and meat sector. All remaining experts should have at least BSc. Degree and above and at least 9-10 years of experience, directly working with small holder farmers, pastoralists and agropastorals on training, coaching, and/or development of training modules.

All team members should be able to travel intensively/frequently to the community for training, coaching and facilitation of market linkages. At least 50-60% of the team should have prior experience in working with the communities of the South Omo Zone.

The consultant is expected to assign community facilitator (s) per kebele and/or district manager in the pro- posed locations to follow up the training and recurrent coaching program for the farmers, pastoralists and agropastorals. Critical follow up by facilitators on the ground should also be done.

The team should have robust M&E framework with M&E specialist to track the key outcomes and learnings.

G. CALENDAR AND BUDGET • The assignment is expected to start by March 2021 (subject to CoVID-19 progress) and be concluded in 20 months. • Costs of all workshops, fieldwork, field day and exposure visits, printing, demonstration materials and all other project related expenses should be included in the budget.

H. SPECIFIC INPUTS TO BE PRESENTED BY IFC • With consent from the Client, IFC shall make available: o Background information on the project, Client (including contact details); o Access to relevant Client’s operation areas, facilities and buildings; • IFC shall provide the baseline reports and the outgrower program scoping mission report. • IFC shall provide sample training materials from local and international organizations. • IFC may engage illustrative person to support the development of training manuals if required. • IFC will provide the current training modules being used for the program, but the consultant must customize it as needed. • IFC will provide linkage with the current projects going parallelly in the project e.g. video production, radio program, vet capacity building projects, AgTech solution, international consultation working on LEAF advisory etc.

I. FOLLOW-ON WORK

This assignment could include follow-on work and is therefore structured in two phases since inception. Phase 1 covers the current tasks specified in the scope of work and paid for under lumpsum contract. Phase 2 would then have an indicative scope in general, plus a statement on unforeseen task, to be determined at the end of phase 1. The consultant could be contracted for phase 2 subject to satisfactory performance in phase 1 and in consultation with IFC’s clients. The consultant is therefore expected to provide a rate schedule for each of the key experts as annex to the financial proposal. If the second phase is confirmed, the rate schedule will be used when prepared the phase 2 contract, which may be lumpsum or time and material.

J. SPECIFIC TERMS & CONDITIONS / SPECIFIC CRITERIA

Consulting firms are requested to submit to Purchaser, a contingency plan detailing how they will continue performance of this Contract with a minimum of delay, interruption or other disruption in the event of a security or health and safety event which affects the Contractor's ability to perform the services. Vendors are advised to check the WBG website (https://www.worldbank.org/en/about/corporate- procurement/announcements/guidance_on_COVID-19) to see guidance for vendors in connection with COVID- 19."

CONFIDENTIALITY STATEMENT All data and information received from IFC for this assignment are to be treated confidentially and are only to be used about the execution of these Terms of Reference. All intellectual property rights arising from the execution of these Terms of Reference are assigned to IFC. The contents of the written materials obtained and used in this assignment may not be disclosed to any third parties without the expressed advance written authorization of IFC.

OWNERSHIP OF MATERIALS Any deliverables under this assignment in any form will be the property of IFC including intellectual property developed under this assignment. All Project outputs including reports and other creative work called for by these Terms of Reference in written, graphic, audio, visual, electronic or other forms shall acknowledge the support of IFC. Such acknowledgment shall contain the IFC logo. The IFC logo should be included in all documents published and distributed and in accordance with IFC Branding Guidelines. All events that take place to extract information, to validate the results, or to distribute the documents, should have IFC banner.

Annex 1: list of kebeles for the outgrower program per woreda (Kolme cluster)** Bene Tsemay Hamer Nyangatom Dasenech Note that Kolme cluster will serve as potential expansion area. Duma (EC) Karakorcho Napusumrya (KC) Arsiamoy Gugnara Enchete (EC) Karadus kangaten (KC) Gumburbur Borkera Bola (EC) Karalebuk Narogoy (KC) Edegngawke Maderiana Gizaba Gisma (EC) Wengabayno Lopakor (KC) Lomosiya Gelgele and kolmele Bura (EC) Achialgone Kuchuru (KC) Alkatkch Tsebela and Kuchale kebele Shalaguyayo(SC) Bonkolelagi Aipa (KC) Torongole Mesoya Alduba (AC) Achimusa Nakriyaman (KC) Abyanan Gurmamero Kufar Naptokoyt (KC) Edborn Stinba (SC) Zegerma Chare (KC) Bayo Sile (AC) Cherkeka Shenkora (KC) Dosha Ansonda (SC) Erboreegude Lorenkachew Bandira Dizi Ama (AC) Wero Kopriyay (KC) Delegmore Morgala (AC) Zeldeketa Total Sermerat Bori (AC) Erboremurale Rukurke Gondoroba Hado Degakekala Nakya Degakejakele Langaye Shankowelfo Libemuket Angude Lokoro Shanko kelema Herker Gedbak Fejej Kolakeja Guranrma Konso zone (Kolme cluster)** Bene Tsemay Hamer Nyangatom Dasenech Note that Kolme cluster will serve as potential expansion area. Genbela Ocholoch Lala Toltale Denbaite Bubua Erbore Kulama Delerele Areaumebule Menogalti Asle Areakeysa Dimeka Senbele Besheda ** Note that because of ongoing unrest in the Konso areas at present, Kebeles in Kolme cluster of Konso zone will be used as areas for potential expansion for out grower program. Once the situation gets better out growers’ establishment will start.

Annex 2: Company Specifications for Input and Output

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