FAIR VALUE DISTRIBUTION ANALYSIS IN THE COFFEE SECTOR. A RESEARCH TO ADVOCATE FOR POLICY CHANGES IN KENYA AND UGANDA

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 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, speeding up change, and take success to scale. Globally, Solidaridad works around coffee and other 12 commodities/sectors (http://www.solidaridadnetwork.org)

Program Summary

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 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.

The context

The coffee industry has been one of the key pillars of Kenya’s economy since independence. The sector has been a significant earner of foreign exchange for the economy and has created jobs for the Kenyan population. Unfair value distribution is a key contributor to declining coffee production in Kenya. 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 deducts the cooperative’s running costs.

Coffee cooperative societies in Kenya are often poorly managed, lacking both technical and business capacity and this reduces business inefficiencies compromising farmer’s incomes. Poor governance, weak financial position for the cooperatives as a result of debts borrowed sometimes without the farmer’s knowledge and lack of transparency as a result of over reliance on manual procedures that make it difficult for the farmers to efficiently scrutinize the management of the cooperative’s affairs, were some of the key findings from this audit. The cooperative also lacks effective marketing strategies and business models to guarantee their future success. This is further worsened by the fact that the current coffee marketing models are highly dominated by the private sector players whose key driver is their business profitability over the producer’s welfare. Coffee farmers are also under represented in forums where their voice can be heard and when they are there, they have limited bargaining power as they do not access adequate information along the coffee value chain.

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 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 value chain 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 sector.

Program expected Outcomes:

1. Inclusive regulatory frameworks developed, improved and implemented that regulate value distribution, fair and equal access to inputs, land and natural resources, decent working conditions and child labour
2. New private sector policies developed, that address Decent Work & Child Labour, fair value distribution, Natural Resource Management and women inclusion.
3. Local and international companies commit to improve transparency in the value chain, and to implement fair value distribution models, and improved norms for Decent Working conditions, as sustainable production and trade
4. Innovative and inclusive technologies and innovations co-designed and implemented to enhance access to innovative solutions and best practices, market intelligence, and thereby increase bargaining power for at least 2 million farmers and workers in 7 value chains.
5. Local multi stakeholder dialogues initiated and strengthened to engage Civil Society and Civil Society’s agenda in debate with public and private decision makers.
6. Civil Society organizations with increased technical, operational and negotiation skills, more structured consultation with their constituencies and better connection to decision makers and therefore an improved capacity to raise voice and reach out to policy makers.

Problem Statement

The coffee market landscape in Uganda and Kenya is characterized by unhealthy, complex power relationships. The absence of transparent market systems in the coffee value chain, in both Uganda and Kenya, compromises farmer incomes. Farmers do not know the real cost of doing business as market actors often engage in business practices that are understood to lead to inflated costs and transfer unnecessary costs to the producers. Farmers in Uganda and Kenya have very weak bargaining power as a result of a lack of access to market information. Farmers are never aware of a net price upfront, rather but receive the normal gross price, from which the management committee deducts the cooperative’s running costs.

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 sector 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 supply chains?
2. Are there gender-specific peculiar challenges faced by women and youth in regards to fair value distribution and sustainable consumption?
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 for Coffee 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? 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 by which the civil society organizations in the coffee sector organizations in Kenya and Uganda?

The objective of the study is to provide information to the target beneficiaries as per the

Methodology:

The methodology for this assessment will include both direct and indirect 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 methodology used during this survey will overall, include, but not be limited to the following:

1. Review existing relevant secondary information and reports related to the Kenyan Coffee value chain.

2. Review of previous Solidaridad related programme level documents and reports.

3. Discuss with key Solidaridad staff, partners, and key informants at Office and field implementation levels.

4. Carry out field visits in the implementation areas for data collection, observations, and triangulation.

5. Hold community-level participatory meetings and focused group discussions for data collection and information gathering. Carry our Key Informant Interviews (KIIs) and Focused Group Discussion (FGDs) shall be utilized.

6. Data collection will also entail analysis of climate risks and vulnerability where both secondary data and primary data through qualitative and quantitative methodologies will be done.

7. Special emphasis will be put on women spaces, youth engagement, and people with disabilities participation, so as to understand and recommend interventions on issues concerning these interest groups from a gender, youth, and people with disability inclusion’s perspective.

8. Use of data from local institutions or organizations.

9. Data analysis and verification of analyzed data.

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 survey will be conducted in the following locations: Kenya. – Bungoma, Nandi, Trans Nzoia, Machakos, Nyeri and Kirinyaga . in Uganda – Mubende, Masaka, Wakiso, Kapchorwa and Sironko Districts

The consultancy/consultant team will be primarily responsible for:

1. Development/design baseline survey tools including questionnaires for the survey and checklist and tools for group interaction including FGD with target beneficiaries at National/county/ village levels.

2. Share the study design including process, methods, and questionnaires/checklist with the programme team, collect feedback and finalize the study design.

3. Pre‐test questionnaires and other tools in one of the programme sites.

4. Submit an inception report.

5. Debrief/discuss with the programme team about effectiveness of questionnaire, checklists, and other tools used in the pre‐test, collect feedback and finalize them.

6. Orient, train, and supervise the enumerators.

7. Carry out fieldwork together with enumerators.

8. Ensure the quality of information collected from fields, cross-check with the validity of information collected and verify/revise where needed.

9. Update progress of the study on a weekly basis to the M&E Officer.

10. Analyze data and prepare quality reports.

11. Give a presentation of the draft report to Solidaridad, and;

12. 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 survey, 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 programme indicators and other guidelines provided by Solidaridad)

● A detailed work plan for the survey

II. Inception Report: which covers the entire process of the preparation phase as per Solidaridad standard/template which will be provided on demand.

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

V. 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.

VI. Raw Data and Study Resources: The consultant should 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 survey. Any relevant documents related to the assignment should be annexed, and raw data of the assessment should also be submitted to Solidaridad.

Experts/Consultant’s Profile:

Consultancy firms/companies with verifiable research work in the coffee sector and who fulfil 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 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 on the coffee industry

● Research experience with coffee farmers is an added advantage

● Excellent communication and written skills in English and Swahili.

● Demonstrated experience in analytical research in the fields of policy, industry, agriculture and environment.

How to apply

Application process:

Applications should be submitted by 20/07/2022. All applicants must meet the minimum requirements described above, those unable to meet the requirement will not be considered. Remember that Solidaridad is an equal opportunity employer. Each application package should include the following:

● A brief proposal for the study with methodology and work plan (not more than 15 pages). The financial proposal should have a budget with breakdowns of different costs involved, to the finer detail. Budget with aggregated figures will not be accepted.

● A sample/samples of previous related work.

● Updated CVs for the team leader and team members

● Contact details of 3 references with complete contact information.

Consultancy Period:

The overall time frame of the survey will be around 30 working days, which will include inception meetings, finalizing the survey methodology, training of enumerators, data collection, data analysis, report writing, and presenting findings of the survey.

The completed proposal together with a budget and work plan (inclusive of relevant taxes), should be submitted to;

[email protected]

while addressed to:

The Regional Director

Solidaridad Eastern & Central Africa Expertise Centre

Kilimani Business Centre, Kirichwa Road,

P.O Box 42234 – 00100 GPO Nairobi.

With the subject below;

Expression of Interest to conduct a coffee sector value distribution analysis in kenya to inform relevant policy changes for fair value distribution

NB; Only successful candidate will be contacted