The ILO is implementing the Partnership for Improving Prospects for Forcibly Displaced Persons and Host Communities (PROSPECTS) Programme in Ethiopia. Financed by the Government of the Netherlands, PROSPECTS is a multi-country programme implemented by the International Finance Corporation (IFC), the International Labour Organisation (ILO), the United Nations Children Fund (UNICEF), the United Nations Refugee Agency (UNHCR) and the World Bank.
The project proposes an integrated strategy that brings together development and humanitarian partners to create durable solutions for refugees and host communities in the pillars of employment, education, and protection. As part of its efforts to create decent work for refugees and host communities in the Somali region of Ethiopia, ILO PROSPECTS is using the ‘Approach to Inclusive Market Systems (AIMS)’ to develop the dairy value chain in the Fafan corridor- Jigjiga . AIMS foresees ‘push and pull’ interventions that would on the one hand focus on strengthening skills, capacities and asset bases of refugees and host communities (i.e. the push), while on the other hand develop sectors and value chains with potential to increase the quantity and quality of income opportunities available to these communities (i.e. the pull).
To this end, ILO has joined forces with the implementing partner Vétérinaires sans Frontières Suisse (VSF-Suisse) who has implemented a series of ‘push’ interventions to strengthen skills and capacities of refugee and host community dairy producers and cooperatives. Notably, VSF-Suisse has trained local Community Animal Health Workers (CAHW) to provide veterinary services and advice on animal health to local communities and started training producer groups on good sanitary practices for milking and milk treatment.
As a next step, the project plans to strengthen the ‘pull’ side of the approach and better connect producer groups to off-taker markets for higher and more stable income. A milk processor, Haldha Milk Processing Plant Share Company, has been identified as a potential partner and off-taker for milk producer groups. This is based on the rational that Haldha milk processor is struggling to find producers that could provide the company with stable access to a certain quantity and quality of milk for his production, while refugee and host community dairy producer groups around Kebrebiya refugee camp are suffering from a lack of links to off-taker markets that could provide them with higher and more stable revenue.
With this background the ILO is looking for an international external collaborator to strengthen market linkages to off-takers for refugee and host community dairy producers in Fafan zone, Jijiga, Ethiopia.
OVERALL OBJECTIVE
This consultancy assignment aims to support the ILO PROSPECTS Programme in exploring options to strengthen linkages of refugee and host community dairy producers around Kebrebiya to dairy offtakers and processors. This will include exploring potential for a partnership with existing milk processing plants including Haldhamilk processing share company that would be beneficial for both processors/Haldha and the dairy producers supported by ILO PROSPECTS. Haldha processor has made it clear that going to the camps to buy milk is associated with substantive transaction costs associated with transport as well as working with the groups to get the right quantity and quality required. A particular problem exists in times of drought when fodder and water needed for livestock is scarce and animals of the dairy producer groups therefore do not produce enough milk. An issue also exists with the quality of the milk produced as traditional practices are not always in line with good sanitation practices. Based on discussions during and following the workshop, it would therefore seem that, in order to facilitate sustainable market linkages between dairy producer groups and off-takers, the producer groups would:
a) need to apply good sanitation practices to improve the quality of the milk
b) need to have continuous access to vet services to ensure animals are in good health
c) need to have stable access to the required fodder and water at any time in order to produce the quantities of milk required by the processor, even in times of drought Next to the above-mentioned identified issues related to producer groups capacities, it is not fully clear to what extend Haldha milk processing company could play the role of reliable off-taker for refugee and host community producer groups. Haldha’s milk processing plant are currently lying idle.
According to Haldha, plans exist to restart operations and increase production to process 10,000 litres of milk per day into pasteurized milk, yogurt (plan and flavoured), ghee, cheese, butter and cream. Yet, in the absence of a solid market study, it is unclear whether sufficient market demand for these products currently exist locally and in the wider region.
The objective of this assignment is therefore to support ILO PROSPECTS in the following: – Conduct a feasibility study for the production of pasteurized milk and dairy products including yogurt, ghee, cheese, butter and cream. This should entail information on consumer behaviour, preferences and willingness to pay, currently available in dairy products and their pricing, currently operating dairy processors in the region and their products as well as costs associated with procuring the various inputs needed for production of the above-mentioned dairy products. The study should ultimately determine whether local production of pasteurized milk, yogurt, ghee, cheese, butter and cream would be feasible and competitive. – Based on findings of the above-mentioned feasibility study, liaise with Haldha and other dairy processors that may have been identified in the framework of the study to scope for interest for a potential partnership with mutual benefit for processors and dairy producers.
The ultimate aim of this activity would be to identify dairy processors or off-takers that have an incentive to work with dairy producer groups and establish a mutually beneficial agreement to purchase milk from these producer groups. – Engage in background research on possibilities to address lack of access to fodder for animals during drought times as the main constraint that hinders stable milk production. Research should take into consideration initiatives by VSF-Suisse to produce fodder locally that are currently being piloted with selected dairy producer groups, but also look into other options to ensure continuous access to fodder for dairy producer groups.
The research should ideally lead to recommendations for interventions under PROSPECTS that would aim to address this key constraint for producer groups.
SCOPE OF WORK
The international consultant is expected to travel to Jigjiga regularly to conduct the required research, liaise and negotiate with local stakeholders, including VSF-Suisse, dairy processors including Haldha, and facilitate achieving the above-mentioned objectives. As outlined above, the consultant is expected to engage in the following activities:
1. Feasibility study for the production of pasteurized milk and dairy products Engage in field research activities to elaborate a feasibility study for the local production of pasteurized milk as well as dairy products like yogurt, ghee, cheese, butter and cream. This will require interviews with a wide range of market actors including shop owners, traders, dairy producers and dairy processors, consumers and business development actors in and around Jigjiga to collect information on:
– Prices of currently available products – Characteristics and origin of currently available products
– Import and export trends for pasteurized milk and dairy products, including prices
– Existing market demand for the various products
– Consumer trends and their capacity and willingness to pay for different products
– Costs and availability of inputs required for production of pasteurized milk and dairy products
– Challenges faced by other/past producers of pasteurized milk and dairy products Results of this research should be summarized and analysed in a feasibility study report and should be used to determine whether local production of pasteurized milk and dairy products are feasible.
The report shall provide recommendations as to which products, if any, could feasibly be produced locally and for which markets and consumer groups.
2. Identify and liaise with dairy processors or off-takers Building on the feasibility study, the consultant shall also provide an overview of pasteurized milk and dairy processors and off-takers that are currently operating in and around Jigjiga. The ultimate goal of this activity is to identify milk processors or off-takers willing to enter into a mutually beneficial agreement with dairy producers in and around Kebrebiya. This may include Haldha milk processing company or any other newly identified processor or off-taker willing to purchase certain quantities of milk from producer groups in Kebrebiya. The consultant is expected to liaise with any potentially interested processor or off-taker in collaboration with ILO and VSF-Suisse and assist the project team in exploring and negotiating a possible agreement between producer groups and off-taker.
3. Action research on access to fodder for animals Access to fodder in times of drought is a major constraint for dairy producers and the main reason why a more stable relationship with off-takers and processors is difficult to forge. Frequently occurring droughts lead to animals being mal-nourished and dying, and milk production therefore decreases or subsides entirely.
VSF-Suisse is currently working with selected producer groups to train them on techniques to locally produce fodder in an effort to ease this constraint. This may not suffice to deal with this major constraint. More action research is needed to determine the root causes of lack of fodder during drought times and understand what could be done to tackle this issue more sustainably. Research should include information on the different types of fodder that can be used, ways to procure these different types of fodder from different sources, as well as the feasibility to produce such fodder locally. Research should ideally give an overview of the ‘market system’ of access to fodder as well as constraints and opportunities in this wider system.
You can find the TOR on the link
Interested consultant should submit, via the below email, the letter of expression of interest addressing it to the ILO Country Office as written in full below along with supporting documents including, technical and financial proposals, curriculum vitae; and contact details (email, telephone number, etc.) Technical proposal should detail the scope, approach, methodology, data collection tool and other relevant sections. The financial proposal should be all-inclusive and include a breakdown (professional fees, travel related expenses, DSA, utilities, consumables, insurance, etc.)
Kindly title your email subject as, “Consultancy assignment to strengthen market linkages to off takers for refugee and host community dairy producers in Fafan zone, Jijiga, Ethiopia.
” To: ILO Country Office for Ethiopia, Djibouti, Somalia, Sudan, and South Sudan UNECA Compound Addis Ababa Email: [email protected]
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