TechnoServe Terms of Reference for the Development of a Feed (Hay) Business Plan for Githunguri Dairy Farmers Company Limited Kenya 2013

Terms of Reference for the Development of a Feed (Hay) Business Plan for Githunguri Dairy Farmers Company Limited

1. General Information

The development of this business plan is one of the activities within a larger intervention that aims to increase the competitiveness of small holder dairy farmers in Kenya by stimulating growth of a commercial market to produce affordable fodder (hay) and supplemental feeds that meet the nutritional standards required to increase dairy productivity.
The intervention is being supported by the Market Assistance Program (MAP) which is DFID’s program for promoting employment and income generation in selected market systems in Kenya.

MAP aims to improve the performance of key market systems that are important for poor people by addressing systemic constraints found in those market systems.

MAP adopts the making markets work for the poor (M4P) approach, which DFID has used to produce results in most of its private sector development work.
TechnoServe an international non-profit economic development organization is an implementing partner within MAP and has partnered with Githunguri Dairy to facilitate the desirable change within the hay and feed market systems.
{TechnoServe Inc. is an international non-profit economic development organization founded in 1968.  Its mission is to help entrepreneurial men and women in poor rural areas of the developing world to build businesses that create income, opportunity and economic growth for their families, communities and countries. www.tns.org}
1.1 Background to the MAP- Commercial Hay and Supplemental Feed Intervention
The milk yield of most small holder dairy cows in Kenya is significantly below their potential because the nutrient intake of the animals is insufficient in both quantity and quality {Available literature (Tagemeo 2008) mentions that the current quality status of the Kenyan Dairy herd is low, with an average of 4-5 liters a day or a lactation of 1,200L – 1,400L per year in Kenya compared with over 5,000L per year in South Africa and 5,000L per year in Denmark}.
Kenya’s small holder dairy farmers often have inadequate feed supply from own farm due to land constraints and have to source forage externally.
Dairy farmers feed their cows by letting them openly graze, mostly on common land or even by the roadside – this does not provide cows with sufficient feeds and is also prone to the vagaries of weather.

Grazing is typically not supplemented with concentrated feeds, depriving cows of the required level of proteins and minerals.

The main reason for not using hay and commercial feeds is their high cost, erratic supply, lack of industry standards with a significant percentage of cost (30%) being attributed to transport. As a result, small scale farmers typically only buy hay during the height of the drought when the cows have to stay alive and there is no grass in the open pastures.
Even then, the quality of hay purchased by farmers is poor and lacks nutritional value because regulations on the feed industry are weak, allowing substandard hay and feed supplements to be sold making farmers unable to recoup their return on the investment.

There is therefore an opportunity to significantly improve the productivity of dairy cows among smallholders by stimulating the fodder (hay) and feeds market, to help farmers optimize the returns of their dairy herds.

The long term projections for milk demand both domestically and in regional markets are more than enough to consume this new expected production capacity.

MAP has partnered with Githuguri Dairies to participate as a commercial hay producer, to grow affordable hay and take part in a quality assurance scheme for customers along with certified labs, retailers/traders, equipment dealers and input firms.

With support from TechnoServe the Dairy will test out a marketing approach designed to encourage quality hay feeding as part of farmer’s daily feeding regime.

1.2 Githunguri Dairies 

Githunguri Dairy is a farmer owned Cooperative owned by small holder farmers from Githunguri District in Kiambu County.

The current total membership of the Dairy is 22,375 dairy farmers.  Githunguri provides its members/shareholders with extension services, credit and savings and input/agro-vet store services.

Githunguri’s feed challenges affect milk processing due to the feeds in use.

Key parameters for processing value added products, such as butter fat and solids often deviate from standards and the off flavors in milk are attributed to strains of fungi found growing on brewers waste and pineapple pulps which farmers use due the high cost of feeds.
During the rainy season farmers feed their cows with succulent grass which makes the milk watery and unsuitable for making premium products.

Equally, land scarcity and low soil fertility are major challenges facing smallholder farmers in the area hence they lack enough, quality and affordable feed.

Githunguri has agreed to explore the possibility of leasing 2,000 acres for commercial hay production.

2. Scope of the Assignment

The focus of this assignment is to develop a business plan for Githunguri Dairies Feed (hay) enterprise.

a) Terms of Reference for the plan

The specific terms of reference for the assignment shall be;
  • Prior to commencing the consultancy, the consultant will be required to review relevant MAP documents relating to the assignment in order to effectively facilitate a workshop comprised of Githunguri Dairies Board and Management Staff and other relevant stakeholders
  • Guide the Dairy in envisioning its role in the feed (hay) sector
  • Facilitate the cooperatives to develop a vision, a mission and core values
  • Conduct an environmental scan and an analysis to identify the external and internal factors that would affect the implementation of this business
  • Facilitate the identification of strategic issues/objectives and capture the sustainability aspect of the business
  • Formulate objectives, strategies, indicators, activities, time frame and resources required by the business plan
  • Identify capacity development needs required to implement the project
  • Identify strategies to mobilize resources to implement the project
  • Produce the final copy of the business plan report that will include: An executive summary; Company Overview; Production and Market analysis; Growth Strategy Analysis; Internal Resource Development plan; Marketing and Sales Plan; Financial Plan, Risk and Sustainability Plan.
b) Managing delivery
The consultant will report on day to day basis to TechnoServe’s – MAP Dairy Feed sector lead.
Ultimate accountability is to TechnoServe’s – MAP Dairy Program Manager.

c) Knowledge management

Effective knowledge management and results measurement is central to effective program delivery.
Consultants are expected to actively support this process wherever requested during the period they are engaged by the program.

d) Expected deliverables

2 hard copies and a soft copy (in CD ROM) of the final business plan shall be submitted to the Cooperatives and TechnoServe.

e) Time frame

The hay enterprise business planning meeting is scheduled to take place within the month of September 2013 and the draft business plan submitted within 2 weeks after the completion of the workshop.

3. Proposal Contents And Evaluation Criteria

All interested candidates should submit the following documents as part of their proposal for the assignment.

Activity and Associated Score

1. Technical proposal reflecting how the consulting firm will undertake the tasks in the TOR and demonstrate clearly how information shall be presented – Score: 40%
2. Financial budget (with explanation of line items) with clearly defined terms of payment. All sums need to be stated in gross amount with all taxes included – Score: 20%
3. Appendices
  • One page CV for the consultant/consultant
  • 2-3 page capability statement
The bidder profile and references need to be structured in order to prove bidders expertise for this assignment in accordance with required qualifications and expertise defined in this ToR – Score: 40%
Total Score: 100%

a) Roles and Responsibilities
 
Consultant
  • Prepare the methodology and develop appropriate tools in consultation with TechnoServe
  • Facilitate the business planning workshop
  • Prepare the business plan as spelled out in the terms of reference
TechnoServe
  • TechnoServe –MAP to invite Githuguri’s Board, Management and relevant stakeholders
  • Organize logistics for the workshop
  • At least one TechnoServe Advisor to accompany the consultant to the stakeholders workshop
b) Selection process
The assignment will be undertaken by a consultant meeting the following qualifications;
  • Degree in Business Management, Marketing, Organizational Development or a related field of study
  • At least three years experience in development work related to the dairy sector in Kenya
  • Experience in business planning process and implementation
  • Demonstrated capacity to conduct market and business research and report writing
  • Proven track record in providing consulting and capacity development services
  • Experience in application of participatory methodologies including adult learning, participatory planning, monitoring and evaluation methods and techniques
  • Demonstrate a clear understanding of production and management challenges experienced by small holder farmers.
  • Ability to manage stakeholder relationships and expectations
c) Indicative Work Plan
Day 1 &2:  Read relevant literature and prepare for the assignment
Day 3 & 4:  Consultations with key stakeholders
Day 5 & 6:  Business planning process
Day 7 to 9:  Finalization of the draft business plan
Day 10:  Input feedback and presentation of the final business plan

Specific days of the work-plan will be agreed on between TechnoServe and the Consultant.

The proposal should reach TechnoServe not later than close of business 1st Monday, September 2013 by 5.00 pm.
Emails should have the subject line clearly marked as “Business Planning Consultancy Service”.
Any proposal received after the time for submission of proposals shall not be evaluated. The proposal should be submitted in PDF format to the email address below:

kenyaprocurement@tns.org

Only the short-listed candidates will be contacted for interview.

TechnoServe Reserves the right to reject the lowest bidder or any other quotations without providing any explanation.



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