OUTGROWER BUSINESS NETWORKS CAPACITY ASSESSMENT REPORT: PATHWAY FOR SUSTAINABILITY OF FTF ADVANCE II OUTGROWER BUSINESS MODEL March 2020 FTF ADVANCE II PROJECT COOPERATIVE AGREEMENT NO. AID-641-A-14- 00001 USAID|GHANA AGREEMENT OFFICER’S REPRESENTATIVE (AOR): CHIEF OF PARTY (COP): DISCLAIMER This publication was produced by ACDI/VOCA. This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The content is the sole responsibility of ACDI/VOCA and does not necessarily reflect the views of USAID or the United States government. Cover photo credit: ACDI/VOCA ii LIST OF ACRONYMS AND ABBREVIATIONS ADVANCE Agriculture Development and Value Chain Enhancement DADFA District Assemblies’ Departments of Food and Agriculture FGDs Focus Group Discussions FTF Feed the Future GFSS Global Food Security Strategy GCX Ghana Commodity Exchange KIIs Key informant interviews MOFA Ministry of Food and Agriculture NABCO Nation Builders Corps NBSSI National Board for Small Scale Industries NOBA Northern Outgrower Business Association NGOs Non-governmental organizations OB Outgrower business OGs Outgrowers PFJ Planting for Food and Jobs RGD Registrar General’s Department SPSS Statistical Package for the Social Sciences SWOT Strength, Weakness, Opportunities, and Threats analysis USAID United States Agency for International Development i Table of Contents LIST OF ACRONYMS AND ABBREVIATIONS ........................................................... i LIST OF FIGURES ...................................................................................................... iv LIST OF TABLES ......................................................................................................... v EXECUTIVE SUMMARY ............................................................................................ vi 1.0 INTRODUCTION .............................................................................................. 1 1.1 Project Background ................................................................................................... 1 1.2 Purpose of the Assignment ....................................................................................... 2 1.3 Objectives of the Assignment ................................................................................... 2 1.4 Organization of the Report ....................................................................................... 3 2.0 STUDY METHODOLOGY AND DATA COLLECTION TECHNIQUES ............. 4 2.1 Development of Data Gathering Tools ................................................................... 4 2.2 Sampling and Sample Size Determination ............................................................. 4 2.3 Enumerator Selection and Training ........................................................................ 5 2.4 Data Gathering .......................................................................................................... 5 2.5 Data Cleaning and Analysis ....................................................................................... 6 2.6 Ethical Considerations ............................................................................................... 6 2.7 Study Limitations ....................................................................................................... 6 3.0 MAIN FINDINGS ................................................................................................. 8 3.1 Characteristics of OBs and OB Networks ............................................................... 8 3.1.1 Distribution of Respondents by Sex and Region ............................................................................. 8 3.1.2 Structure and Operations of OB Networks ................................................................................... 9 3.1.3 Characteristics of OBs ................................................................................................................... 10 3.1.4 OBs’ Registration Status ................................................................................................................ 12 3.2 Capacity to Undertake Long-Term Strategic Planning and Implementation ... 13 3.3 Capacity to Plan and Undertake Advocacy Activities.......................................... 15 3.4 Capacity of Networks to Support OBs’ Service Delivery to Smallholder Farmers ........................................................................................................................... 16 3.4.1 Service Delivery to OGs ................................................................................................................ 19 3.5 Relationship between OB Network and Key Value Chain Actors and Stakeholders ................................................................................................................... 21 3.5.1 Capacity to Engage Various Stakeholders at the District, Regional, and National Levels ............. 21 3.5.2 Capacity to Engage with Other Stakeholders, Including New Buyers........................................... 22 3.6 Extent to which Youths and Women are Reached .............................................. 24 3.7 Capacity to Assemble, Use, and Share Data and Information ............................ 25 3.7.1 OBs’ Access to Market Information and Intelligence .................................................................... 28 3.8 Sustainability Issues ................................................................................................. 28 4.0 KEY OBSERVATIONS ......................................................................................... 31 5.0 CONCLUSIONS AND RECOMMENDATIONS ................................................. 32 ANNEXES ................................................................................................................. 35 ii ANNEX 1. REQUEST FOR PROPOSALS AND SCOPE OF WORK OF OUTGROWER BUSINESS NETWORKS’ CAPACITY ASSESSMENT ........................................................................... 36 1. Introduction ............................................................................................................... 37 A. Company Background ..................................................................................................................... 37 B. Program Background ...................................................................................................................... 37 II. Purpose and Scope......................................................................................................... 39 A. Purpose of the Assignment ............................................................................................................. 39 B. Deliverables .................................................................................................................................... 40 C. Timelines ......................................................................................................................................... 41 III. Contract Mechanism And Terms of Payment ................................................................. 42 IV. Proposal Preparation And Submission Requirements ..................................................... 42 A. Instructions for Proposal Presentation ........................................................................................... 42 B. Instructions for Submission of Proposal ......................................................................................... 43 V. Criteria for Evaluation .................................................................................................... 44 VI. Solicitation Process ....................................................................................................... 44 VII. Terms and Conditions .................................................................................................. 44 A. Late Submissions............................................................................................................................. 44 B. Modification of RFP Requirements .................................................................................................... 45 C. Withdrawal of Proposals................................................................................................................. 45 D. Right of Negotiation And Acceptance of Proposal ......................................................................... 45 E. Validity of Proposal ......................................................................................................................... 45 F. Intellectual Property Rights ................................................................................................................ 45 VIII. Attachments ............................................................................................................... 45 ANNEX 2. Interviews and Focus Group Discussions Held .............................................. 46 ANNEX 3. Bruce Tuckman’s Five-Stage Model of Group Development ......................... 48 ANNEX 4. Sample of OB Network’s Strategic Plan ....................................................... 49 ANNEX 5. Sample of Purchasing Contract .................................................................... 50 iii LIST OF FIGURES Figure 1. Distribution of respondents by sex and region ............................................................ 8 Figure 2. Age distribution of respondents...................................................................................