TOR: Living Income Farmer Income & Productivity Analysis
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 average sales turnover of EUR 16 million per year, the company exports 7% of Uganda's Arabica coffee.
2. The Supporting the Sustainable Future of Coffee Farming in Uganda Program
As the largest exporter from the African continent, coffee is a vital pillar of Uganda’s economy. Most of Uganda’s Arabica coffee is produced by smallholder farming families, with limited acreage and productive trees.
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.
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.
Part 1 of this project is already completed, which focused on identifying the Living Income benchmarks (LI Benchmarks) for three Arabica coffee producing areas of Uganda. It was based on the Anker & Anker methodology for a living wage, which was applied to a living income.
SHIFT/GLC are now looking for a consultant/consultancy firm to support the next stage of the project: developing the farmer income and productivity analysis, and the gap analysis between LI benchmarks and actual farmer income.
3. Objective of the Consultancy
The purpose of this consultancy is to support SHIFT/GLC with:
1. Producing the farmer income and productivity analysis for each of the three regions.
2. Conducting the gap analysis between the LI benchmark and actual farmer income for each of the three regions.
The farmer income and productivity analysis will be based on the ongoing farmer household mapping/sustainability survey of over 10,000 GLC-associated farmer households in the three regions of study. This survey collects detailed information about farmer households, productivity, and sustainable farming.
The consultant/consultancy firm is expected to determine the actual farmer income in each of the three regions, through an analysis of the associated costs and revenues.
As part of this analysis, the consultant/consultancy firm is also expected to determine:
· the current, as well as the maximum potential, farmer productivity and income, given these farmers’ current resources.
· The minimum coffee price required per region, for coffee farmers to meet the regional LI benchmark.
· A discussion of the drivers behind why farmers are not currently meeting the regional LI benchmarks.
· An analysis of coffee price elasticity, that explains how coffee farmers’ income changes as a result of fluctuations in the cost of production and/or coffee prices.
The farmer income calculation is then expected to be used to determine the gap between the regional LI benchmark and how much money GLC-associated farmers actually earn.
The overall goal of this consultancy is to deliver the farmer income & productivity analysis and the gap analysis, to then inform the third stage of this project: segmenting farmers based on their current income levels and potential, and then finally determining strategies to improve farmers’ income to ensure that they meet the LI benchmark.
Note: SHIFT/GLC will also be working with an external consultant/consultancy firm for the final stage of this project (farmer segmentation & income diversification strategies). While SHIFT/GLC are prepared to tender for this final phase, they would also be open to providing the contract to the consultant/consultancy firm handling this assignment. This decision will be based on discussions with the selected consultant/consultancy firm, and the successful and timely completion of the tasks outlined in this ToR.
4. Methodology, Key Tasks and Deliverables
The consultant/consultancy firm is expected to propose the methodology for calculating farmer income and productivity, as well as the gap between farmer income and the LI benchmark, in each of the three regions. The consultant/consultancy firm is expected to provide a detailed justification of all associated calculations, making the process and data sources transparent to the client.
To complete this assignment, the consultant/consultancy firm should propose a comprehensive methodology that includes the key tasks and deliverables below.
The overall timeline for this consultancy is February–March 2021.
Phase 1: Farmer Income and Productivity Analysis- (February)
Review farmer survey data
Develop the farmer income and productivity methodology
Inception Report / Methodology Note
Produce the draft farmer income and productivity analysis (for each region)
Draft farmer income and productivity analysis
Finalize the draft farmer income and productivity analysis (for each region)
Final farmer income and productivity analysis
Phase 2: Gap Analysis- (March)
Produce the draft gap analysis (for each region)
Draft gap analysis
Finalize the gap analysis (for each region)
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 working with smallholder farmers and economic studies,
Experience conducting living income and income productivity 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.
The total price for this consultancy is 6,000 USD. This includes any travel or other expenses.
7. 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 firstname.lastname@example.org no later than February 1, 2020.
Submissions should include the following:
1. Updated curriculum vitae of the individual or team who will perform the consultancy, clearly spelling out their role, relevant qualifications and experiences.
2. A short (under 6 pages) 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 inclusive of daily rates and all other itemized expenses.
4. At least 2 references from recent organizations where the consultant(s) has worked, and examples of relevant publications, writing samples or work products.