BACKGROUND
Turkana County has an estimated population of 800,000people. It’s one of the ASAL in Kenya situated on the North West of the country. As a county it’s highly dependent on pastoralism, which is the dominant socio-economic backbone of the county. Turkana County is characterized by both high and low fertility soils( with water being the most limiting factor on their productivity) and a highly variable rainfall pattern, historical marginalization, a low population density, poor quality and low access to basic services, poor infrastructure, HIV aid challeges and political marginalization. One key consequence of the interactions of the above factors is the development of strong social cultural organization structures of the local community, a situation which is further strengthened by the widely dispersed, and highly mobility of the local population in search of pastures for their livestock. Both the national government and other sources indicate that over 95% of the population is said to be living below the absolute poverty line while ground evidence seems to indicate that a large part of the population is disproportionately unsupported by the development processes in operation currently. Despite the challenges, the social capital among pastoralist is usually very high as a coping mechanism and remains one of the best options in initiating change and development. Oxfam Kenya Program has been working in Turkana County for many years undertaking humanitarian activities to address the various challenges and esp. the frequent foods insecurity challenges using both short and long term strategic interventions .In recent years, there has been a shift in the mode of approach to the food insecurity challenge esp. in such fragile environments. The use of “market mechanism” type of interventions is slowly taking a more prominent role as a long term developmental strategy. The market intervention aim at” using the markets to strengthen the local economy, to avoid distortion of the local economy and to enable the target communities to regain their autonomy”. Preliminary evidence and experiences gained from a number of ongoing projects and activities undertaken by Oxfam Kenya Program in Turkana indicates that there is a strong relationship between Economic security and Food security. There are ongoing discussions and learning on the possibility of increasing the outreach and strategic interventions, that are directed towards improvement of the local economic security with the aim of triggering and stimulating Local Economic Development (LED). This is expected to contribute to the improvement of local living conditions, access to basic services and in the long run act as a strategic DRR preparedness and resilience tool of mitigation. The project entitled “Sustainable livelihoods through Value Chain Development for Pastoral Communities in Turkana” supported by the EU and Oxfam is one such an attempt. In Turkana County, the Livestock sub sector plays an important and pivotal role, both socially and economically. Its provides a livelihood opportunity (as a source of food, income, employment) for households that directly depend on Livestock. One distinction of the sub sector is that it is an unstable livelihood option due to recurrent drought that affects most parts of the county where in most instances the dominant livestock sector suffers. Other factors compounding the problem include insecurity, natural resources degradation; natural resources competition which intensifies with time, rigid social cultural factors and the sector is still yet to fully recover from 2011 drought effects From an economic point of view, the livestock sub sector supports a dominant industry which is interconnected with both the local, national, and regional economies through its various interconnected functions like Livestock trade, sale of by products like skins/ hides, and milk through the Local traders agents and livestock transportation. The Livestock sub sector and industry is contributing towards alleviating poverty in the local context through the creation of wealth, increasing employment opportunities and forming the basic framework in supporting other alternative livelihood options outside livestock. Indicators on the ground confirm that the livestock sub sector has the potential to contribute more than it’s currently doing were it not for a number of challenges and constraints that the National Government, the County government of Turkana and other agencies and donors seek to address. Oxfam Kenya Program is interested in undertaking a detailed Value chain Analysis of the key value chains in the Turkana Livestock Sub sector in order to generate Information for use in planning for strategic intervention in the Sector. This is expected to stimulate its potential in driving the social economic fabric of the county. Oxfam (in conjunction with other key partners) is interested in developing, designing and advocating for key strategic interventions in the livestock sub sector now and the next ten years.
The Value chain Analysis of the Livestock sector will:
- Inform Oxfam, the national Government and the county government on suitable market based interventions in further stimulating the development of the livestock sub sector as an engine of development.
- Inform on the economic viability of the Lomidat Abattoir market Model for replication in other areas within Turkana County esp. on the possibility of diversification to include small stock either in Lomidat or other in other key livestock market in Turkana County.
- Mapping out key market actors from Production to the Terminal markets based on the key value chains in the livestock sub sector in Turkana County i.e. the Goat, Cattle meat value chain and to a lesser extent the Camel and Donkey value chains. The value chain for live camels should also be explored. Identifying the camel terminal markets in Kenya and the region and recommend on its viability and sustainability.
- Identify potential secondary economic opportunities (Livestock value addition opportunities) for development that can be undertaken and exploited by women, as well as the youth and men who have” dropped out “from the pastoralist economy’. Possible linkages with the Leather council of Kenya on this should be explored and developed. The consultant should develop or borrow a working model for enabling these vulnerable groups engage in meaningful business ventures.
- Make a series of recommendation on maximizing the benefits to the producers and local traders (both formal and market enablers or broker) on opportunities in the Livestock sub sector the recommendation should be very practical and context specific. The recccomendation made should practical avoid pilots or experimental interventions for people whose poverty index is 96%. A Review of the livestock marketing co-management model in the face of the County government will also be considered ( role of Livestock market association need clarification)
- Identify possible issues and strategies that can be used to undertake a successful policy and advocacy strategy in the project area on livestock issues.
- Analyze the potential Key Livestock value chain market and advice on: • Inform on the establishment of the optimum livestock reserves (statistics) at any given time, actual carrying capacity of pasture within the county based on production potential as a basis for developing a market development plan.
• Livestock diseases affecting livestock marketing and their Control • Existing comparative advantages for livestock keeping in Turkana . • Market information access in the terminal markets. • The potential secondary markets for the identified value chains and their segmentations. • Entry/Regulatory requirements for different types of the livestock business. • Quality Control and other market standards in operations. As a national government function, explore how best can it be done and adhered to in the livestock value chains
The following are the terms of reference for the consultancy. Undertake a detailed Market Mapping and value chain analysis (VCA) of the Turkana Livestock sub sector by identifying: The key Primary chain actors along the two key Livestock value chain (Shoats and cattle): (from the Producers and inputs supply to the end consumers) identify who they are, possible numbers, their key functions, key operational challenges and possible interventions. Included in the analysis of the primary actors indicate the changes in prices along the identified value chains together with the margins and other economic aspects like market share of the key product and its sub products transactions along the value chain. Also it’s expected the consultant will evaluate the social aspects, such as participation and governance along the chain as well as identify the chain captain(s). The key chain supporters/Support services (secondary actors) of the chain and their role and services. Identify the challenges experienced in offering/Accessing their services. Identify any gaps currently existing in service provision and who can possibly provide such services. Examine the regulatory and policy framework that affect both the Turkana county livestock sub sector, and secondary markets, outlining the key provisions, level of implementation and the challenges involved in their implementations. The consultant will recommend strategies that will strengthen advocacy activities and maximize engagement with policy making processes, both locally and at national level. Analyze the over-all business environmental under which the livestock sub sector is operating under in Turkana and link this to the national level. Provide a SWOT analysis of the Livestock marketing structures In Turkana County and link to trans county value chains. Undertake a desktop research and advice on persons or institutions that will provide basic statistics on the potential of Turkana livestock sub sector: Annual production trends, volumes of trade from Turkana, end market quality requirements( exports, regional and national markets), possible market trends in livestock and its by products, major trends affecting the livestock industry and its by products , the production costs and the economic analysis of the livestock sub sector, pricing and packaging. Undertake a comprehensive Competitive (comparative) analysis of the identified Key value chains in Turkana versus other competitive production areas in the livestock Sub sector in Kenya. Identify key USP (Unique selling points) of the Turkana Livestock sub sector key identified value chain products range and identify how the local economy can take advantage of the USP to compete with other regions in Kenya. In case where Turkana Livestock product do not possess USP, advice on how Turkana can competitively market its key livestock products in the identified key value chains. As part of the competitive analysis undertake to identify the consumers and market perception (altitudes) of the Turkana Livestock products and how the existing perceptions shape the marketing of the Livestock products from Turkana. Undertake a comprehensive analysis of the Lamdat Abattoir Business/Market model and advice on the feasibility of replication of the model in other production areas in Turkana. Specify possible product ranges, possible sites for future development, costing of future development and possible Terminal market Outlets
Based on the detailed analysis of the above Provide: 1. A detailed analysis of the overall market opportunities for the various sub sector products within the overall livestock sub sectors that can potentially be exploited: Locations, quantities, quality and other product requirements. Examine if the adoption and replication of the Lamdat Abattoir Market/Business Model in other sub counties in Turkana is possible: Implications, Costs and possible benefits both in the short and long run. Of particular interest to Oxfam is the possible inter linkages between the Livestock sub sector and other business sectors and services e.g. the basket and mats making practices by Turkana women, the fish sub sector and the general retail trading in the larger Turkana social economic development. Where possible provide data that can be used to make decisions on future investment opportunities esp. in regard to value addition opportunities in the Livestock Sub sector. 2. Delineate and examine the different Market channels of Turkana key livestock value chain and their products, outlining opportunities for exploitation, additional investments, challenges and possible interventions. A market segmentation is expected with a possible examination and decision based on facts on the best sub sector to focus on esp. by women and the youth. 3. An analysis of the basic business support services needed to strengthen the market system in support of the poor producers. Identification of possible service gaps existing that needs to be filled and an indication by whom? 4. An analysis of the competitors of Turkana Livestock Sub sector, identify their basis for the competition and outline existence for any USP (unique selling Points) for the competitors. Further identify the perception of consumers on Turkana Livestock products. Advice on the benefits that can be accrued from branding of Turkana livestock products and advice on the branding modalities. 5. Based on the observed market conditions and opportunities, outline key future strategic interventions and development proposals to trigger and stimulate the development of the Livestock sub sector in the next ten years. The proposed strategic interventions will be critically examined for their suitability and sustainability versus the results from the VCA. They should also be aligned to the CIDP (county Integrated development plan) of Turkana County. 6. Make recommendation (s) for a functional business model for Turkana Livestock Value products range.
1.TIMEFRAME:
Time Frame for the consultancy is 40 days. The whole Value Chains Analysis process will take approx 30 days to be completed, this will include: Interaction with Oxfam Management team, field teams, beneficiaries, key stakeholders and report writing. The expected date of the work is Early April 2013 and the final research report will be produced by Early May 2013.
- CONSULTANT/ TEAM QUALIFICATIONS
The Consultancy team must be multidisciplinary (with one of the key consultant with a Livestock industry background) as the Analysis is an opportunity to set the overall direction of the proposed program. At the minimum, the consultant(s) must possess the following:
i. At least a Masters Degree in Business related Disciplines, Development Studies or Economics, with a minimum of five (5) years demonstrated experience in agribusiness research and/or Practice with good understanding of Value chain development. ii. Demonstrate a good understanding of the Arid and Semi Arid Areas (ASALs) with practical working experience or research/Surveys in such environments. iii. Experience of effective interaction with local and national institutions, government departments, and Business service providers. iv. Be Conversant with current business models and practice around the Livestock sub-sector in the region. v. Practical application of cross cutting themes like gender mainstreaming, and gender competence, M&E, Advocacy. vi. Good spoken and written communication skills in English and Swahili. vii. Proven experience of using participatory tools and methodology. viii. Excellent analytical and report writing skills. ix. Past Experiences Working on Livestock Sub sector value chain development will be an added advantage.
- EXPECTED DELIVERABLES
The required outputs of this consultancy will be as follows: i. An inception report (maximum five pages) outlining the approach/methodology and execution programme/timetable. This report shall be submitted for review and approval by Oxfam GB two (2) days after the signature of the contract, but before commencement of the work. ii. Data collection tools which shall be submitted within two days after acceptance of the methodology for review and approval by Oxfam GB. iii. Draft VCA report which shall be submitted within five days after completion of the field iv. Presentation of the key findings to the stakeholders. v. The final report which shall be submitted within five days after the stakeholders’ dissemination workshop and shall incorporate both Oxfam and stakeholders inputs.
- BID REQUIREMENTS
Firms or Consultant(s) who KNOW that they meet the requirements should submit a maximum of 10 paged expression of interest, which should include the following: 1. A suitability statement, including commitment to availability for the entire assignment. 2. A brief statement of on the proposed study methodology including a detailed work plan. 3. A detailed financial proposal, including daily cost per major activity. 4. Updated curriculum vitae that clearly spell out qualifications and experience for the key Consultant(s). (These can be annexed, and are not part of the statement of expression of Interest in 2 above) 5. Contacts of 3 organizations that have recently (but preferably the last 3 years) contracted the firm/consultant(s) to carry out relevant research/ survey or related work in livestock sub sector.
