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TOR: Farmer segmentation & livelihood strategies

1. About SHIFT Social Impact Solutions and Great Lakes Coffee

SHIFT Social Impact Solutions works with forward-thinking companies, organizations and institutions who seek to contribute to the Sustainable Development Goals (SDGs) through sustainable sourcing strategies that deliver targeted social impact. SHIFT works to implement programs that increase profitability, while creating more effective and sustainable supply chains, that lead to higher incomes and better livelihoods for producers.

SHIFT’s partner Great Lakes Coffee Company (GLC) is a Ugandan company who has been sourcing, milling and exporting green coffee from East Africa for 90 years. With an average annual export volume of 9,561 tons of Arabica, and an average sales turnover of EUR 16 million per year, the company exports 7% of Uganda's Arabica coffee.

2. Context – Arabica Coffee Farmers in Uganda

As the largest exporter from the African continent, coffee is a vital pillar of Uganda’s economy. While Uganda's coffee industry is dominated by the production of Robusta, the country also produces some of the world’s finest Arabica coffee in the mountainous border regions.

Most of Uganda’s Arabica coffee is produced by smallholder farming families, with limited acreage and productive trees. The long-term sustainability of coffee-growing communities in Uganda depends on farming household’s ability to earn a viable income, while supporting the social, economic, and environmental wellbeing of future generations through sustainable development.

As an important indicator of overall wellbeing, understanding and improving smallholder income vis-à-vis the cost of living is vital for ending poverty in farming communities. Higher incomes increase purchasing power and have a cascading effect on various sustainable development metrics – such as food security, health, and education – making income a critical overall measure of progress out of poverty.

3. The Supporting the Sustainable Future of Coffee Farming in Uganda Program

With funding from the Deutsche Gesellschaft fur lnternationale Zusammenarbeit (GIZ) GmbH and industry partners, SHIFT/GLC are implementing the Sustainable Living Income Project: Supporting the Sustainable Future of Coffee Farming in Uganda.Launched in 2019, this project aims to support farmers to achieve a living income in an environmentally and socially sustainable way. The project is part of an ongoing, cross-sectoral effort to improve the livelihoods of Ugandan coffee farmers.

The first two phases of this project are now completed. They focused on:

· Phase 1: identifying the living income benchmarks (based on the Anker & Anker methodology for a living wage, which was applied to a living income)

· Phase 2: calculating actual farmer income and productivity, and determining the corresponding gap between the farmer income and LI benchmark for three Arabica coffee producing areas of Uganda.

SHIFT/GLC are now looking for a consultant/consultancy firm to support the final stage of the project: developing the farmer segmentation and income diversification strategies.

4. Objective of the Consultancy

The purpose of this consultancy is to support SHIFT/GLC with:

1. Segmenting farmers into four categories, based on their current and potential income levels, in each region

2. Determining strategies to diversify and increase farmers’ income, for each segment and region

1- Farmer Segmentation: The GLC-associated farmers will be segmented into four distinct groups, based on their current and potential ability to earn a living income from coffee, and/or from other activities, as illustrated below:

· Segment 1: Farmers meet the LI benchmark with their current coffee production.

· Segment 2: Farmers have the potential to meet the LI benchmark through coffee.

· Segment 3: Farmers have the potential to meet the LI benchmark through coffee and diversification with other crops or activities.

· Segment 4: Farmers have the potential to meet the LI benchmark through other non-coffee crops and/or activities.

2- Strategies to increase and diversify farmers’ income: The consultant/consultancy firm is then expected to identify strategies for increasing each segment’s income to ensure that farmers can meet the LI benchmark for a decent quality of life. These strategies are expected to be specified to each of the study’s three regions (e.g. in terms of other crops to grow and sell, or other off-farm income generating opportunities available), and to generally focus on:

· The optimal level of coffee growing to maximize farm profitability

· How to increase productivity from coffee farming (through training/GLC engagement, etc.)

· Ways to diversify income beyond coffee farming, e.g. with other cash crops and off-farm activities

5. Methodology, Key Tasks, Deliverables and Timeline

The consultant/consultancy firm is expected to propose a comprehensive methodology that includes the key tasks and deliverables in the table below.

The overall timeline for this consultancy is May 2021. Key tasks, deliverables and timeline are as follows:

Key TasksDeliverableTimeline

Phase 1: Farmer Segmentation

-Review LI benchmarks, farmer income and productivity analysis, gap analysis, and the farmer database for each region- 1 week after signing contract

-Develop the methodology for the farmer segmentation- (Deliverable- Inception Report / Methodology Note)- 1 week after signing contract

-Draft farmer segmentation (for each region)- (Deliverable-Draft farmer segmentation)- 2 weeks after signing contract

- Finalize farmer segmentation- (Deliverable- Final farmer segmentation) 3 weeks after signing contract

Phase 2: Income Diversification Strategies

-Produce the draft income diversification strategies for each segment (for each region) - (Deliverable- Draft gap analysis) 3 weeks after signing contract

- Finalize the income diversification strategies for each segment (for each region) (Deliverable- Final gap analysis)- 4 weeks after signing contract

6. Qualifications

SHIFT/GLC are looking for a consultant or consultancy team with the following qualifications:

· Education: University degree or equivalent in agricultural or business related studies

  • 10 years of experience in conducting living income studies

  • Previous experience working with international organizations and farmer communities

· Knowledge of the context of the rural environment of Uganda

· Fluency in English

This opportunity is open to local, national and/or international consultants and firms.

7. Price

The total price for this consultancy is 10,000USD. This includes any travel or other expenses.

8. How to apply

Individual service providers or firms who feel that they can meet or exceed the requirements should submit their expression of interest to no later than April 15th, 2021.

Submissions should include the following:

1. Updated curriculum vitae of the individual or team, clearly spelling out the relevant qualifications and experiences.

2. A short technical proposal that details your approach and methodology for this assignment, as well as the proposed number of days and timeline. If applying as a team or firm, please explain the different roles of each member for completing this assignment.

3. A financial proposal that provides the daily rate and all other itemized expenses for completing this assignment.

4. At least 2 references from recent organizations where the consultant(s) has worked, and examples of relevant publications, writing samples or work products.

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