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CONSULTANCY SERVICE, TERMS OF REFERENCE FOR COMPREHENSIVE ASSESSMENT OF DAIRY FARMS

Addis Ababa

  • Organization: SOS Children’s Villages International
  • Location: Addis Ababa
  • Grade: Consultancy - Consultant - Contractors Agreement
  • Occupational Groups:
  • Closing Date: Closed

 

Terms of Reference for Consultancy Service: Comprehensive Assessment of Dairy Farms

  1. Introduction and Background

SOS Children's Villages in Ethiopia is a non-governmental, non-political, non-denominational charitable child welfare organization. For the past nearly 50 years, we have been working to build families for children in need, help them shape their own future and share in the development of their communities. Everything we do is based on the best interest of the child. We help vulnerable families care for their children, and we work to prevent the breakdown of parental care. When children lose their own parental care, we provide quality alternative care. We support young people in their efforts to become independent adults and succeed in life.

With the aim of supporting SOS families in the provision of care services, SOS Children’s Villages in Ethiopia currently operates dairy farms in five locations across Ethiopia. These locations include SOS CV Hawassa with 22 herds (12 cows), SOS CV Addis Ababa with 7 herds (3 cows), SOS CV Harar with 15 herds (7 cows), SOS CV Jimma with 10 herds (5 cows), and SOS CV Mekelle with 10 herds (6 cows). Presently, the farms are managed by SOS and organized groups of individuals assigned by SOS CV.

We are inviting experienced and qualified consultants to conduct a comprehensive study on the existing dairy farms operated by SOS CV in Ethiopia. The purpose of this study is to transform dairy farms into a profit-making enterprise under SOS CV's Hermann Gmeiner Business Enterprises. Before initiating this transformation, it is crucial to conduct a thorough assessment of the dairy farms. The findings of this assessment will serve as a baseline and aid in developing a comprehensive business plan. The successful completion of this consultancy work will play a vital role in converting the dairy farms into a sustainable and income-generating venture.

  1. Scope of the Assessment

The scope of this consultancy work includes conducting a comprehensive assessment of the existing dairy farms in all three (3) locations – namely; Addis Ababa, Mekelle and Hawassa. The assessment will cover various aspects, including the current status of the farms, their operations, infrastructure, production capacity, and resource utilization. Additionally, the consultant will conduct a feasibility analysis to determine the legal and technical feasibility, economic justifiability, and investment worthiness of transforming the farms into a profit-making business, and prepare business plan. The assessment will also involve a value-chain analysis to identify potential business alternatives and opportunities.

  1. Objectives of the Assignment

The main objective of this consultancy work is to conduct a comprehensive assessment of the existing dairy farms and develop a business plan for their transformation into a sustainable and income-generating venture. The specific objectives include:

  • Establishing a baseline to measure progress and evaluate the business conversion and growth process
  • Conducting a feasibility analysis to determine the viability and worthiness of the dairy farms as a business venture
  • Developing a comprehensive business plan based on the findings and analysis
  1. Proposed Methodology

The consultant will employ a mixed-method approach for data collection and analysis. This will include:

  • On-site visits to the dairy farms for observation and data collection,
  • Interviews with relevant stakeholders, including SOS CV staff, farm workers, and other personnel involved in the farm operations,
  • Surveys and questionnaires to gather information on market dynamics, production processes, and resource utilization,
  • Financial analysis to assess the economic viability of the dairy farms,
  • Value-chain analysis to identify potential business alternatives and opportunities.
  1. Deliverables of the Assignment

Expected deliverables of the assignment are:

Baseline Assessment Report:

The consultant will provide a comprehensive Baseline Assessment Report, which will serve as a reference point for measuring progress and evaluating the business conversion and growth process. This report should include the following components:

  • Current status of the dairy farms, including infrastructure, equipment, and resources,
  • Analysis of production capacity, milk yield, and herd management practices,
  • Assessment of resource utilization and efficiency,
  • Identification of strengths, weaknesses, opportunities, and threats (SWOT analysis),
  • Overview of the existing market dynamics and competition,
  • Recommendations for improvement and areas of focus for the business conversion process,

Feasibility Analysis Report:

The consultant will deliver a comprehensive Feasibility Analysis Report, which will determine the viability and worthiness of the dairy farms as a business venture. This report should include the following components:

  • Legal and regulatory analysis, including compliance requirements for establishing a profit-making enterprise,
  • Technical assessment of the infrastructure, equipment, and operational processes,
  • Economic analysis, including financial projections, cost-benefit analysis, and return on investment (ROI) calculations,
  • Market analysis, including demand and supply dynamics, pricing strategies, and potential customer segments,
  • Value-chain analysis, identifying potential business alternatives and opportunities,
  • Risk assessment and mitigation strategies,
  • Recommendations for the next steps based on the findings,

Investment Requirements:

The consultant should assess the financial needs and investment requirements to bring the dairy farms into a profitable state. This includes identifying the required capital for upgrading infrastructure, acquiring additional cattle, improving feed quality, implementing modern technology, and enhancing operational efficiency,

  • Financial Analysis: Conduct a thorough financial analysis to estimate the investment costs and determine the project's financial viability. This analysis should include a detailed breakdown of the investment requirements, projected cash flows, return on investment (ROI), payback period, and other relevant financial indicators,
  • Investment Strategies: Evaluate different investment strategies and options for financing the transformation of the dairy farms. This may include exploring options such as debt financing, equity financing, partnerships, grants, or government subsidies. The consultant should provide recommendations regarding the most suitable investment strategies based on the financial analysis and market conditions.

 

 

 

Business Plan:

The consultant will develop a comprehensive Business Plan mainly comprised of but not limited to the deliverables indicated above. The Business Plan should provide a roadmap for transforming the dairy farms into a sustainable and income-generating venture. Key components of the Business Plan should include:

  • Executive summary, outlining the purpose, objectives, and key highlights of the plan,
  • Introduction, background and history, including current status of the dairy farms
  • Company overview, including the vision, mission, and organizational structure of the Hermann Gmeiner Dairy Farm,
  • Market analysis, identifying target markets, customer segments, and competitive landscape,
  • Product portfolio and pricing strategy,
  • Operations plan, including production processes, supply chain management, and quality control measures,
  • Financial projections, including revenue forecasts, cost analysis, and investment requirements,
  • Sales and marketing strategy,
  • Implementation timeline and milestones,
  • Risk management and contingency plans,
  • Monitoring and evaluation framework,
  • Investment Plan: Develop a detailed investment plan as part of the business plan. This plan should outline the specific investment requirements, including the estimated costs for infrastructure development, capacity expansion, herd management improvements, technology adoption, and other necessary investments. It should also specify the timeline for the investment phases and the expected sources of funding.
  • Financing Strategy: Outline the financing strategy for securing the required investment. This should include a comprehensive analysis of the available financing options, including loans, grants, equity investments, and other financial instruments. The consultant should provide recommendations on the optimal financing mix and strategies for attracting the necessary capital,
  • Return on Investment (ROI): Calculate the projected return on investment for the transformed dairy farms. This should include an analysis of the revenue streams, cost structure, and profit projections. The consultant should provide a clear assessment of the expected financial returns and the time it will take to achieve profitability.
  1. Timeline/ Work Schedule

The assessment is tentatively scheduled to be conducted from March 20 – April 20, 2024. The consultant is expected to provide a detailed timeline for the project, including key milestones and deadlines.

  1. Required Qualification and Experience of the Consultant

The consultant should possess the following qualifications and experience:

  • Demonstrated expertise in dairy farming, including knowledge of best practices, herd management, and milk production,
  • Proven experience in conducting feasibility studies and developing business plans for agricultural enterprises, preferably in the dairy sector,
  • Strong analytical and financial modeling skills,
  • Familiarity with the Ethiopian agricultural sector and market dynamics,
  • Excellent communication and report-writing skills
  1. Costs and Payment Schedule Related to the Assignment

All contractual fees/ costs related to the assignment, which are to be covered by SOS Children’s Villages Ethiopia, are detailed in this section. It shall include:

Cost Description

Unit Cost

Qty

Total Cost

A)   Consultancy/ Trainer Fee

i)      Daily rate of the consultant and the expected number of days

ii)     daily allowances/ per diems

B)   Administrative Costs

i)      Transportation costs

ii)     Accommodation and meals

iii)   Communication costs (telephone, internet, postal service, etc)

iv)   Photocopying and printing

v)    Others

15% VAT (if applicable)

Total

Agreed upon consultation fee shall be paid as per the following payment schedule.

  • 40% upon signing of contractual agreement
  • 60% upon successful completion of the assignment and submission of final report
  1. Proposal Submission

Interested individual consultants/ consulting firms who would like to apply for the consultancy work should submit:

  • Cover letter:  a cover letter with a maximum of one page outlining the suitability of the consulting firm/ individual consultant to the assignment, introducing the consulting firm/ consultant with an expression of commitment to carry out the work as described in this TOR
  • Technical proposal:- The technical proposal basically should include:
    • An understanding of the ToR,
    • Consultant's profile, including relevant experience and qualifications,
    • Proposed methodology and work plan, outlining the approach to be taken for the assessment and business plan development,
    • Team composition and roles,
    • Detailed budget breakdown, including consultancy fees, travel expenses, and any other relevant costs,
    • Samples of previous similar work,
    • Contact details for further inquiries or clarification requests
  • Financial Proposal:- This includes the total financial requirement to carry out the consultancy work including the detailed breakdown of costs
  • Renewed license (if a consulting firm) and TIN
  • Technical and financial proposals should be enclosed, signed, and stamped in separate envelopes
  • Technical and financial proposals should be submitted to the following address SOS Children’s Villages Ethiopia, Bole Sub-City, Kebele 03/05. Namibia Street, on the road from Edna Mall to Atlas, opposite to Mado Hotel on or before March 05, 2024, until 4:00 PM.

In-person:

  • SOS Children’s Villages Ethiopia, National Office; Bole Sub-city; Near Atlas Hotel

Post office:

  • SOS Children’s Villages Ethiopia, National Office; P. O. Box: 3495; Addis Ababa

Contact address:

  • Tel: +251-116612194/ +251-116611501
  1. Proposal Evaluation and Selection Process

Only proposals meeting the requirements stated below shall qualify for evaluation. A team of three people will evaluate the technical proposal before the opening of the financial proposal. The proposals shall have two merits of evaluation in which the technical proposal accounts for 70% and the financial proposal accounts for 30%. Proposals will be evaluated based on the following criteria:

  • Understanding of the TOR objectives and proposed methodology (10%)
  • Suitability of proposed methodology 15%
  • Relevant experience and qualifications of the consultant and their team (25%)
  • Demonstrated ability to deliver high-quality reports & actionable recommendations (15%)
  • Proposed timeline and budget feasibility (5%)
  • Value for money for the financial proposal (30%)

Technical proposals with higher scores and not less than 45 out of 70 shall be considered for further evaluation of the financial proposal. Finally, the three (3) highest-scoring bidders will be given provisional acceptance based on the accumulated points/ score on the evaluation of technical and financial proposals.

  1. Ethical Standards

SOS CVE is a child-focused organization and will always uphold the safety and well-being of children as it strives towards creating a better environment for children and their surrounding community. To ensure this, SOS CVE will only consider those who are suitable to work with children. The selected consultant will sign the code of conduct or child protection policy of SOS CVE before the commencement of the assignment.

  1. Declaration

SOS CVE has the right to fully or partially cancel this call for proposal.

 

This vacancy is now closed.
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