Background

Poverty reduction and growth are the highest priorities of the Government. The Rectangular Strategy Phase III reaffirms government’s commitment to prioritize policies and investment in support of agriculture; infrastructure; private sector development and employment; and human resources development. The global economic crisis and the rise in food and fuel prices have led the RGC to adopt a dual approach. This aims to increase national competitiveness and diversify the economy; and to expand the social protection and safety nets.

The government has identified agriculture as the top priority for Cambodia’s socio-economic development, focusing on increasing productivity and diversifying within this sector. This is clearly reflected in the Rectangular Strategy III and the NSDP IV both covering the period 2014-2018. Similarly, the Cambodia Trade Integration Strategy 2014-2018 (CTIS 2014-2018) stresses the need for Cambodia to strengthen and accelerate the diversification of its export base above and beyond its original, two core export sectors – garments and tourism.  To support this major strategic orientation, CTIS identifies: (1) 10 product and service export potentials for export development focus (including cassava) (2) “cross-cutting” reforms and institutional developments required to unleash growth in those potential exports; and, (3) capacity developments in areas of trade policy and Aid for Trade management. The strategy was endorsed by the Sub-Steering Committee on Trade and Trade-Related Investment in December 2013 (the Committee serves as National Steering Committee for all Aid for Trade in Cambodia) and launched officially by H.E. Prime Minister Hun Sen in February 2014.

This is also in line with the results of the country’s Trade Policy Review undertaken in 2011 in partnership with the World Trade Organization (WTO) that calls for Cambodia to move away from its dependency on garment and rice and urges to diversify and expand the country’s export basis.

Cassava is the second largest agricultural crop in Cambodia and growing rapidly.  Statistics from the Ministry of Agriculture, Forestry and Fisheries (MAFF) indicates production of nearly 4.250 million MT in 2010, up from 3.5 million MT in 2009.  MAFF sources estimate that 2013 production reached almost 8 million MT. The fast growing importance of the sector for export diversification and export revenues cannot be underestimated.  Additionally, the sector might have been generating anywhere between $300 to $400 million worth of “informal” export revenues in 2013.  Even though Cassava has become the second largest agricultural crop in term or income, employment, hectares cultivated, and exports (more on this in the next section), there is very little technical assistance support provided to the sector.

This lack of technical support is potentially serious considering cassava cultivation could have ecological consequences. Research has shown that continuous cassava cultivation on small plots could contribute to serious nutrient depletion and deterioration of chemical and physical conditions of the soil. When grown on even gentle slopes, continuous cassava cultivation could even contribute to soil erosion. But it need not be the case: cassava cultivation can be made sustainable using proper methodologies or when part of a sustainable integrated system.

The Ministry of Commerce and UNDP Cambodia have partnered since 2008 to tackle the above challenges and provide know-how and best practices to Cambodia’s cassava sector. One key instrument developed under this cooperation was a Value Chain Analysis of the cassava sector carried out in 2009. Five year later, increased investment in the sector coupled with interests from new buyers (in particular from China) for raw and processed cassava products meant that Cambodia’s cassava value chain is changing deeply. As a result, UNDP wishes to update the existing Value Chain study as a tool to assess where support provided through the CEDEP II project could be best used.

UNDP, in its CPAP, has vowed to support the above goals of economic diversification and poverty reduction and in particular the human capital development and competitiveness issues. Similarly, at the request of the Government, UNDP has decided to re-engage deeply in the trade sector, trade being an engine for economic growth, through the creation of a dedicated project within UNDP

The Cassava component will contribute directly to:

  • UNDAF outcome on “promotion of equitable, green, diversified economic growth”;
  • CPAP Outcome #1 on Poverty Reduction: strengthening national and sub-national capacities to develop a more diversified, sustainable and equitable economy;
  • CPAP Output #1.1: supporting human capital development and institutional capacity for selected sectors of importance for the diversification of the economy;
  • CPAP Outcome #2: enabling national and local authorities, communities and the private sector to sustainably manage eco-system goods and services and respond to climate change.

Duties and Responsibilities

Scope of Work

The principal aim of a Value Chain Analysis (VCA) is to generate sufficient information to identify the main opportunities and bottlenecks in the export value chains of sectors, and to assess whether or not a UNDP intervention is likely to contribute significantly to export growth in these sectors, and if so, to build a business case for them.

The main objective of the cassava value chain study is to identify priority cassava value chains and reveal indicative patterns and trends, assess capacities and identify key constraints at various stages with a view to inform the CEDEP II cassava project

The study will focus on assessing the performance of the chain in terms of value added at each stage, the level of returns to chain participants and whether these are exploitative compared to primary producers, the level of competitiveness in the chain at each stage and the major challenges and constraints faced.

The Value Chain Analysis is expected:

  • To give a realistic indication of the sustainable development potential (economic, social and environmental), and in particular for women (this could be done by assessing the roles of women in different segments of the supply chains -production, processing, trading- and the possible impact of the sector to the gender issues);
  • To visualize the value chain in order to get a better understanding of the different underlying value chain(s), its opportunities but also constraints and bottlenecks;
  • To assess how UNDP intervention could contribute significantly to export growth within the project period.

More concretely, the results expected from the Value Chain Analysis are as follows:

An overview of the demand for Cambodian cassava products.

This includes, at least:

  • Volume of current demand for the (quality of) cassava products;
  • Opportunities for growth, and conditions for export growth;
  • Requirements for the cassava products to realize export growth;
  • Sustainable economic development potential (social and environmental);
  • Prepare a complete value chain map showing who are the chain stakeholders (actors, supporters and influencers) in the value chain. This includes exploring the value added captured by different actors e.g. growers, local collectors, traders, exporters etc. involved in the value chain.  The role of women in each segment of the value chain shall be highlighted;
  • The number of potential participating companies in the country and their experience with exporting, level of quality standards
  • Identify the main bottlenecks (incl. finance and investment) along the export value chain that hinder exports. In other words why export currently is not reaching its full potential?
  • What service provider(s) or institution(s) is/are in the position and/or show the potential capacity to remove the bottleneck(s)?
  • Describe what opportunities exist in the chain(s), in terms of possible improvements that lead to significant increases in export volume. This should relate to the demand in the market on the one hand, and the possibilities that exist within the chain(s) on the other hand;
  • What bottlenecks can be addressed by UNDP in the context of the CEDEP II project? How UNDP could help to alleviate the bottlenecks identified in the value chain analysis within a time span of 3 years;
  • Risk assessment.

The assessment should at least answer the following two questions for all the identified bottlenecks:

  • Are the bottlenecks critical (i.e. the CEDEP II project would fail to improve exports if the bottlenecks are not removed as planned)?
  • What is the risk that these bottlenecks will not be removed on short-term (High-Medium-Low)?

Stakeholder analysis:

Considering the variety of actors that have a stake in or are interested in developing the value chain(s) a mapping of the different stakeholders is required. It is recommended to analyse the stakeholders using a stakeholder assessment grid.

This Value Chain Study will be conducted in three phases as follow:

Phase 1 (internal desk research and inception report): Based on initial desk research (analysis of supply and demand and opportunities in the export markets), the consultant will present a short Inception Report (deliverable no. 1), containing the following elements:

  • Literature review;
  • Brief description of the different Cassava products traded worldwide;
  • Volumes of current demand for cassava products (by products / by market);
  • Cassava market trends and opportunities for Cambodian exporters;
  • Requirements for the Cambodian sectors to realise export growth;
  • Information gaps;
  • Plan of action for phase 2 (e.g. a revised approach to fill the information gaps, a modification or narrowing down of province and product selection, etc.

Phase 2 (further desk research + field work): Working with the Cambodian researchers and UNDP staff, the consultant will lead field work investigation, focusing on those provinces considered by the project and/or having major potential for export diversification and growth.

Phase 3 (Value Chain Analysis): after finalizing the value chain analysis, the consultant will submit a draft Value Chain Analysis report (deliverable no. 2) to UNDP, to be discussed and validated with partners. After discussion with UNDP, the report will be enriched and finalized. The final VCA report is deliverable no. 3.

Expected Outputs and Deliverables:

  • An inception report containing the key elements as highlighted in the scope of work is produced;
  • Draft value chain study report containing the key elements as highlighted in the expected results under scope of work is produced and the debriefing meeting with value chain stakeholders to validate the findings is conducted;
  • Draft value chain study report is revised based on comments from partners, UNDP, and other stakeholders and the final value chain study report is produced at the required quality.

Institutional Arrangement:

Under overall direct supervision of the ACD/Poverty Team Leader, oversight of Programme analyst with guidance from CEDEPII project management specialist, Consultant will be responsible for producing Value chain Assessment report.
The following step are to be used for the VCA:

 Desk research including:

  • Proposed methodology for the VCA;
  • Analysis of supply and demand using existing export data (from Cambodia or using mirror sites);
  • Analysis of relevant value chain and market studies and material produced recently;
  • Initial desk research will result in an inception report.

Field work in Cambodia, including:

  • Identification of and interviews with relevant value chain actors;
  • Interviews with Cambodian farmers, local collectors, middlemen, exporters, processors and business association representatives
  • Meeting with key government officials, in particular in the Ministry of Commerce and the Ministry of Agriculture, Forestry and Fisheries;
  • Data collection and validation of (export) statistics;
  • Plenary sessions with value chain stakeholders to validate research findings.

Final reporting, describing findings, results, constrains and recommendations as detailed in paragraph IV above.

Duration of the Work

The consultant will be 40 working days from 01 October to 31st January 2014 The consultant is expected to be on board in the 1st week of October 2014 and completed assignment no later than last week of December2014.

Consultant has to submit his/her output in accordance with the defined work plan and payment is issued only with satisfactory of outputs accepted/approved by the UNDP ACD/Poverty Team Leader.

Duty Station

The consultant will be based in UNDP country office. UNDP vehicle will be provided to support the consultant during the data collection and meeting with stakeholders.

The consultant is expected to work for 15days from home and to be in Phnom Penh for 25 days including travel to province during the data collection, meeting with relevant stakeholder, preparing and presenting of final report.

Competencies

Functional Competencies:

  • Time management (in managing deliverables);
  • Team management;
  • Professionalism, courtesy, patience;
  • Outstanding inter-cultural communication, networking and coordination skills.

Corporate Competencies:

  • Demonstrates commitment to UNDP’s mission, vision and values;
  • Exerts strict adherence to corporate rules, regulations and procedures;
  • Familiarity with the internal control framework and results-based management tools is a must;
  • Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.

Required Skills and Experience

Education:

  • At least Masters  in Agricultural Economics or Social Science especially in Economics, Development Economics, Management with bias for SME Development.

Experience:

  • Extensive knowledge or not less than 10 years of  experience with international agencies and programs, preferably with UN agencies in the areas of promoting agricultural trade;
  • Diverse understanding and clear knowledge of Commodity Market or Agro Processing or Cassava products;
  • Experience with value chain analysis in developing countries and in particular in Asian LDCs; and has at least conducted one or more value chain analyses before as lead consultant/researcher;
  • Have conducted similar exercise in the recent past;
  • Requisite experience in design of value-chains and frameworks for agro-allied sector of the economy.

Language:

  • Excellent written and oral English;
  • Knowledge of Khmer is an asset.

Important note:

Interested offeror is strongly advised to read the Individual Consultant (IC) Procurement Notice, which can be viewed at http://procurement-notices.undp.org/view_notice.cfm?notice_id=17854 for more detail about term of references, instructions to offeror, and documents to be included when submitting offer.

Documents to be included when submitting the application:

Interested offeror/individual must submit the following documents/information.

UNDP reserves right to reject any applications that is incomplete.

Please be informed that we don’t accept application submitted via email.

Interested candidate is required to submit application via UNDP jobsite system, because the application screening and evaluation will be done through UNDP jobsite system. Please note that UNDP jobsite system allows only one uploading of application document, so please make sure that you merge all your documents into a single file. Your on-line applications submission will be acknowledged where an email address has been provided. If you do not receive an e-mail acknowledgement within 24 hours of submission, your application may not have been received. In such cases, please resubmit the application, if necessary.

Any request for clarification/additional information on this procurement notice shall be communicated in writing to UNDP office or send to email vannara.chea@undp.org and/or procurement.kh@undp.org. While the Procurement Unit would endeavor to provide information expeditiously, only requests receiving at least 5 working days prior to the submission deadline will be entertained. Any delay in providing such information will not be considered as a reason for extending the submission deadline. The UNDP's response (including an explanation of the query but without identifying the source of inquiry) will be posted in Individual Consultant (IC) Procurement Notice page as provided above. Therefore, all prospective Offerors are advised to visit the page regularly to make obtain update related to this Individual Consultant (IC) Procurement Notice.