FAIR VALUE DISTRIBUTION, SUSTAINABLE CONSUMPTION IN THE COFFEE, FRUITS, VEGETABLE SECTOR IN KENYA AND UGANDA TO SUPPORT OF EVIDENCE-BASED ADVOCACY Consultancy

Preamble

Solidaridad is an international network organization with eight regional expertise centres worldwide. Its mission is to bring together commodity supply chain actors and to engage them to develop innovative solutions to improve production, thereby ensuring the transition to a sustainable and inclusive economy that maximizes the benefit for all. Solidaridad strives to be an organization that understands the signs of modern times, seeking to be a Civil Society Organization (CSO) with its own place and role in society, while simultaneously interacting with Governments and markets. With 50 years of experience Globally in facilitating the development of socially responsible, ecologically sound and profitable supply chains, Solidaridad is a frontrunner in the area of sustainable economic development. Solidaridad envisions a world in which all we produce, and all we consume, can sustain us while respecting the planet, each other and the next generations. Solidaridad embraces the public-private and people partnerships (PPPP) in order to test innovations, speed up change, and take success to scale. Globally, Solidaridad works around Fresh food products and other 12 commodities/sectors (http://www.solidaridadnetwork.org)

Program Summary

The RECLAIM SUSTAINABILITY! (RS!) Project is a 5-year program (2021-2025) supported by the Ministry of Foreign Affairs, Kingdom of the Netherlands. The program is implemented through a consortium and in brief, it tries to invoke the actual meaning of sustainability both in theory and practice in global commodity supply chains. The programs strategic objective is to contribute to an inclusive sustainable value chain and trade in an innovative way, in which the interests, voices and rights of farmers and citizens (both male and female) are represented and heard in decision making for sustainable use of natural resources, decent work, fair value distribution, and sustainable consumption.

Context : Fruits and vegetable sector

The fruit and vegetable sub-sector plays a crucial role in export earnings contributing significantly to the agricultural GDP. The sector is key to achieving SDG 1, 8 and 12 that is, poverty reduction, decent work & economic growth and responsible production & consumption. It is one of the most promising sub-sectors in increasing household incomes in the rural and peri-urban areas, improving the nutrition of the people, diversification of exports, provision of raw materials for agro-based industries as well as creating jobs, especially for youth and women. The sector is also the main driver of the non-agricultural economy including manufacturing, providing inputs and markets for non-agricultural operations such as building/construction, transportation, tourism, education and other social services.

The fruit and vegetable supply chain comprises of a number of players including the farmer as the primary producer, the aggregator/market agent/middleman (popularly known as ‘the broker’) the transporter Processor and the trader/reseller/retailer. Few farmers get a fair share of the value created downstream resulting in insufficient income to cover production costs, grow their business, or increase competitiveness. Market power is concentrated in the hands of a few (traders, processors and retailers) with prevailing norms that prioritize short-term profits and maximise price reduction. A farmer is most of the time reduced to a price taker in the market system.

A farmer invests time (at least 3 months) to produce; broker/trader reaps higher profits in a day with only organizing for transport to the market; a processor/exporter adds value and reaps even bigger profit without investing much time. The hidden costs of production are not factored in leading to negative social and environmental externalities that producers, and the wider society, have to bear. Value chains lack transparency and traceability, leading to information asymmetries, negatively affecting farmers’ access to market information and their bargaining position for better value. The gender division of labour and roles often leads to unequal allocation of benefits and returns from the value chain. As a result, women farmers benefit less than their male counterparts due to unequal power balance and unequal access to productive resources, training and skills development, and networks and information.

The coffee sector

The coffee industry has been one of the key pillars of the economy in Kenya and Uganda since independence. The sector has been a significant earner of foreign exchange for the economies and has created many jobs. Coffee is one of the leading commodities where over 1 million people are engaged in production and other coffee-associated businesses. Despite the economic importance of coffee in Kenya and Uganda, it still has several challenges that influence the coffee value chain negatively.

Unfair value distribution is a key contributor to declining coffee production in Kenya and Uganda. Unexplained delays in settlement of farmer dues by coffee marketers and sometimes their cooperatives often complicate the problem further. Furthermore, they often receive far less money than they expect because of unexplained deductions by the coffee marketers and their cooperatives. The consistent poor returns for farmers have greatly reduced the quantity and quality of Kenyan coffee. Farmers are so much demotivated and as a result, thousands of hectares of coffee land are converted to other uses each year. Farmers are never aware of a net price upfront, rather receive the normal gross price, from which the management committee deduct the cooperative’s running costs.

Coffee market structures globally are oligopsonistic with millions of smallholder coffee farmers selling their production to a limited number of major local and international buyers. As price takers, these smallholders are vulnerable to a global coffee market controlled by a handful of actors whose interests do not necessarily align with theirs. This leads to significant imbalances in the distribution of value among the various participants of the chain. Absence of transparent market systems in the coffee value chain in Uganda compromises farmer incomes as the cost of processing and trade is more often than not exaggerated. Farmers do not know the real cost of doing the coffee business as the market actors quite oftenly engage in unethical business practises to inflate costs and transfer unnecessary costs to the producers

To address these systemic challenges; the Reclaim Sustainability Programme seeks to strengthen the interaction between a Responsible Private Sector able to strengthen the position of farmers and consumers in the coffee, fruits and vegetable supply chain through inclusive innovative digital and fair business models. A Supportive Public Sector that influences agendas, policy and develop solutions to address issues in the coffee, fruits and vegetable value chains and trade in an inclusive way and A Vibrant and Strong Civil society which will mobilize, activate and engage citizens & civil society organizations (CSOs) to change norms and influence policy agenda in the coffee, fruita and Vegetable sector.

Objective of the study

The objective of the study is to conduct research that adequately responds to the following questions on the basis of the contextual realities in the coffee and fruits and vegetable (Potato, Banana, Pineapple, Avocado, Beans and Cabbage) sectors in Kenya and Uganda and provide information to the target beneficiaries as per the indicators of project objectives and expected results specified in the project results framework.

1. What are the specific bottlenecks for farmers in accessing and sustaining equitable profits for their products and services offered in the coffee, fruits and vegetable supply chains?
2. Are there gender-specific peculiar challenges faced by women and youth?
3. Which nodes of the supply chains offer maximum return on investment for farmers?
4. What type of business model(s) are/is suitable for promotion to Coffee, fruits and vegetable farmers to adopt to take opportunities in participating and profiting from the high-level return nodes of the supply chain?
5. What is the consumption pattern for coffee, fruits and vegetables can local consumption be promoted in the selected countries?
6. Which are market access avenues available for farmers e.g. are there digital platforms through which farmers can sell their products and services?
7. What are the specific unique challenges in the markets and what are suitable solutions to overcome for the farmers to benefit?
8. What are the ongoing lobby and advocacy interventions in relation to fair value distribution and sustainable consumption and by which civil society in the coffee, fruits and vegetable sectors organizations in Kenya and Uganda?

Methodology:

The methodology for this assessment will include both primary and secondary data collection, analysis and cross-referencing, and formulating recommendations thematically and as area/site-specific to adequately meet the objectives of the survey. The consultant will finalize the assessment methodology to undertake this study in line with the scope of the assessment, presented and refined with the management during the inception meeting.

The survey will be conducted in the following locations in Kenya and Uganda

Under Fruits and vegetables

• Uganda. – Mubende, Masaka, Wakiso, Mukono and Luwero Districts
• Kenya. –Makueni, Kajiado Meru and Kirinyaga

Under Coffee

• Uganda. – Mubende, Masaka, Wakiso, Kapchorwa and Sironko Districts
• Kenya – Bungoma, Nandi, Trans Nzoia, Machakos, Nyeri and Kirinyaga

Responsibilities of Consultants

The composition of the survey team is left up to the consultant/ organization based on their internal system, ideas, and logic. However, Solidaridad recommends that the team comprise one Team Leader (TL) to coordinate/conduct the overall study and liaise with Solidaridad. To collect information from the field using an adequate number of Field Enumerators (FEs). Supervision of the fieldwork and quality (reliability and validity) of the data/information collected from the field is the primary responsibility of the TL. The TL will work closely with Solidaridad M&E Officers and the programme team. In each step and process, consultation with the Project Manager and the M&E Officer are vital.

The consultancy/consultant team will be primarily responsible for:

1. Development/design of the research tools including questionnaires for the research and checklist and tools for group interaction including FGD with target beneficiaries at National/county/ village levels.
2. Share the reseach design including process, methods, and questionnaires/checklist with the programme team, collect feedback and finalize the research study design.
3. Submit an inception report.
4. Debrief/discuss with the programme team about effectiveness of questionnaires, checklists, and other tools used in the pre‐test, collect feedback and finalize them.
5. Orient, train, and supervise the enumerators.
6. Ensure the quality of information collected from fields, cross-check with the validity of information collected and verify/revise where needed.
7. Update progress of the reseach study on a weekly basis to the M&E Officer.
8. Analyze data and prepare quality reports.
9. Give a presentation of the draft report to Solidaridad, and;
10. Submit a final report (a compiled version of the report ‐ both hard copy and electronic version in word format) to the project after incorporating the feedback and suggestions from Solidaridad.

Expected Deliverables:

The Consultant should deliver the following:

• I. Work plan and expression of interest (EOI) for the research study, outlining;
• A detailed methodology for implementation of the survey, including proposed sample sizes.
• Draft data collection tools (The Consultant shall refine proposed standard indicators in reference to the proposed program indicators and other guidelines provided by Solidaridad)
• A detailed work plan for the research study

1. Inception Report:
2. Draft Report: A draft report on the research study, present to key staff of Solidaridad and partners of initial findings. The consultant will address the feedback from Solidaridad and the partners involved.

• IV. Presentation on the main findings of the study for validation involving project teams, and other stakeholders as agreed with the project team.

1. Final Report: in English incorporating all the comments received from Solidaridad staff and partners with a maximum of not more than 40 pages, excluding annexes and consisting both hard and soft (CD ROM/USB) copies. The consultant will be provided with the report template for the final report.
2. Raw Data and Study Resources: The consultant shall annex any relevant documents related to the assessment. He/she will also submit raw data of the assessment to Solidaridad. The consultant should respect the property right of all primary data/information generated as a result of this

Experts/Consultant’s Profile:

Consultancy firms/companies with verifiable research work in the coffee, fruits and vegetable sectors and who fulfill the following requirements are encouraged to express their interests.

• Relevant degree(s) in social sciences or development studies,
• Strong experience with and knowledge of qualitative and quantitative research methods and sampling strategies
• Experience in business development research with expertise in business modeling / cost-benefit analysis,
• An expert with a gender background in the team
• Experience in designing and conducting studies using experimental or quasi-experimental techniques.
• Statistical analysis skills and strong proficiency with data analysis packages.
• Proven experience in conducting baseline study surveys, impact studies and evaluations, preferably in the Coffee and fruits and vegetable sectors.
• Excellent communication and written skills in English
• Demonstrated experience in analytical research in the fields of policy, industry, agriculture and environment.