Agricultural Inputs Business Linkages Consultant

Job Description

Feed the Future, Ethiopia Farm Service Center Project

Short Term Technical Assignment (Consultant)

Scope of Work:

Assignment Title: Agricultural Inputs Business Linkages Consultant

Assignment Location: Addis Ababa, Ethiopia

Announcement Date: November 2, 2015

Assignment Duration: 16 days (3 days pre-assignment desk study, 3 travel days, 8 days in-country, 2 days final report/ follow up)

Deployment Date: Flexible, but immediate deployment availability preferred

Program Description:

The three-year Feed the Future Ethiopia Farm Service Center Project, in partnership with USAID and CNFA, provides technical support to the Ethiopian Agricultural Transformation Agency (ATA) in establishing 20 Farm Service Centers (FSCs) throughout the Oromia, Amhara, Tigray, and SNNPR regions of Ethiopia. This is a follow-on project to the successful Commercial Farm Service Program (CFSP), which piloted CNFA’s Farm Service Center Model in Ethiopia.

CNFA’s Farm Service Center (FSC) model is a market-based, private sector business that utilizes a matching grant as well as technical assistance to establish a small or medium-sized enterprise that delivers farm supplies and services. FSCs are typically located in larger townships and serve as rural development centers that meet the needs of private farmers in their communities. These centers provide a range of agricultural inputs (crop protection materials, fertilizers and seeds), machinery services, veterinary services and products, marketing assistance for agricultural outputs, training and information, and access to credit, which will benefit over 160,000 smallholders over the life of the project.

Assignment Background:

To date, CNFA has established six Farm Service Centers in Ethiopia. In October 2014, the six existing Farm Service Centers established an apex wholesale buying cooperative, EGAA Agricultural Input Suppliers PLC, to serve as a vehicle for bulk buying and price discounts to supply the inventory needs of the Farm Service Center network. EGAA purchases its inventory directly from international suppliers to supply Farm Service Centers (who work directly with smallholder farmers) cutting out redundant actors in the supply chain. In 2015, EGAA imported its first consignment of 15,200 Kilograms of Ridomil Gold MZ 68WG from Syngenta, Switzerland, with a value of 255,000 USD. The first consignment was distributed to member Farmer Service Centers, who subsequently distributed the product to smallholders at a price less than 30% of the average market rate.

At least five multinational agricultural input manufacturing companies are operating in Ethiopia, each distributing their products to a diverse client base through local sales agents. EGAA’s recent market entrance and its successful import of its first consignment from Syngenta paved the way for smallholder farmers to acquire quality product at lower prices. Data from the Ministry of Agriculture shows that there exists a significant gap between supply and demand levels for agricultural inputs in Ethiopia. The unmet demand for inputs represents an opportunity for EGAA to conduct a profitable agricultural inputs business without undermining a substantial market share of the existing Syngenta product distributors. Other multinational companies are asking that EGAA develop a persuasive business proposal that demonstrates their reliability, in order to initiate business operations with them. Business negotiations between EGAA and suppliers such as Syngenta, Dow Ag. SC. and Bayer CS are ongoing. Feed the Future Ethiopia Farm Service Center Project believes that building a network with high level personnel from these multinational companies improve awareness about EGAA’s business model and lead to more productive and reliable business engagements.

Performance Activities:

• Travel Days: 3-4 days, depending on the location of the consultant
• Pre-travel tasks: 3 days

Objective: Analyze the current bargaining power and potential growth of EGAA, with the end-goal of introducing and promoting the organization to major multinational agricultural input suppliers.

Review the following reports to create a better understanding of EGGA and initiate preliminary questions and clarifications during the field assignment.

• Review EGGA’s profile including its current three years business vision, mission, and strategies,
• Review EGAA brand promotion strategies report developed by a volunteer consultant;
• Review EGAA business negotiation strategies report developed by a volunteer consultant;
• Review existing publicly available information of multinational companies (websites, fliers, etc.) and assess their operational countries and wholesale modalities. This task is not necessarily limited to the review of websites, but phone and other networking mechanisms may be used. The purpose of this activity is to develop a list of key contacts within the target companies.

In-Country Assignment: 8 days

Objective: Develop a strategy and build the capacity for EGAA to negotiate the terms and conditions for bulk purchase orders, as well as agency and distribution rights for international agricultural inputs.

• Assess EGAA’s on the ground partnership modalities through on-site one-on-one discussions with EGAA’s management and technical team;
• Meet with potential multinational companies to assess their current wholesale marketing and distribution approaches;
• In partnership with EGAA, conduct communications (phone, e-mail, or Skype) with the key personnel of multi-national companies based in regional or headquarters;
• Provide debriefing and list of key follow-up action items;
• Develop a strategy for EGAA to win agency or distribution rights with multinational companies producing agrochemicals, veterinary drugs and seeds.

Post-travel Assignment: 2 days

• Finalize report writing

Performance Deliverables:

• Final report that includes:
  • Detailed list and contact information of multinational companies key personnel based in headquarters and regional offices;
  • Post-assignment list of networking follow-up action items along with key indicators demonstrating the action items are accomplished;
  • A strategy document for EGAA to win agency or distribution rights with multinational companies producing agrochemicals, veterinary drugs and seeds; and
  • Recommendations for future capacity building for EGAA.

Expected Outcomes:

• Short-term: Created business relationships between EGGA and multinational input suppliers;
• Long-term: Increase EGAA inventory capacity and sales;

Major Requirements

• Expert negotiating skills with a strong understanding of the agricultural inputs market and the multinational companies involved in their manufacture and supply;
• Knowledge of the internal operating systems and supply chains of the major multinational suppliers such as Syngenta, Bayer CS, DOW Ag. Sc., BASF, DuPont, etc.;
• Highly familiar with the range of agrochemicals, veterinary drugs, and seed (especially horticultural crops seed);
• Able to assess business strategies, forecast growth, and pitch the value of EGAA;
• Executive or officer level work experience in the agricultural input market preferred;

Application Instructions:

Interested applicants should submit a cover letter and resume to Andrew Beehler at abeehler@cnfa.org with the subject line “Agricultural Inputs Business Linkages Consultant”.

About the Organization

CNFA is a not-for-profit organization based in Washington, D.C., dedicated to stimulating economic growth in the agricultural sector by nurturing entrepreneurship, private enterprise and market linkages. CNFA specializes in fostering private sector investments in training, new technologies and marketing as a means to increase the overall competitiveness of agricultural value chains, to expand exports, and to develop skills in the rural workforce. CNFA assists smallholders in increasing household-level food security and nutrition through improved agricultural practices, introduction of new varieties, diversification of crop production, food preservation and storage, development of farmer-based organizations and strengthened linkages to markets.