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Somali Regional State Irrigation and Basin Development Bureau would like to invite interested consultancy companies to participate in the work to determine the economic and social feasibility of the selected four agro-processing lines, including geographic feasibility; determine raw material (input) source both in the region and outside and recommend on management style and market.

Bids closing date 10 days starting the date posted on the Ethio jobs website.
Bids opening date No Specific Opening Date & Time
Published on 2merkato.com ( Mar 24, 2020 )
Posted on Mar 24, 2020

Announcement of Consultancy Service

Somali Regional State Irrigation and Basin Development Bureau would like to invite interested consultancy companies to participate in the work, on the attached ToR.

1.                  BACKGROUND

In a view to harnessing from the immense potential from pastoral and agro-pastoral development, Somali Regional State has produced a five-year development plan that would serve the basic plan document that would guide the regional development from 2008 to 2012 E.F.Y. The Second Growth and Transformation Plan (GTP II) gives  special emphasis to pastoral and agro-pastoral development works, diversify the  agricultural sector, from the traditional livestock sector to small scale and large scale commercial crop production. Smallholder’s agrarian and pastoral agriculture will continue to be the main source of agriculture growth and transformation.

As one of the goals of GTP II agricultural transformation plan was to improve Livestock and Crop Production and Productivity. The focus areas mentioned were increased milk production, increase meat & poultry production and apiculture development (bee farming). The Somali Region has immense potential in livestock resources. The major source of an increase in milk production is expected to be from indigenous cows and goats that are herded under extensive grazing system while significant surge and incremental yield are also expected from camel herds. With regards to meat and poultry production, a significant increase in meat production from cattle (beef), goat, sheep (mutton), camel and poultry is expected during the plan period.

Despite huge production potential in the region, the overwhelming majority of the region’s population has very little acquaintance of poultry in terms of both production and consumption as the mobile pastoral households deem chicken farming cumbersome and despise it for some socio-cultural reasons associated with pastoralist. However, in urban centers, rural sedentary and agro-pastoral areas of the region, backyard scavenging poultry is kept for egg production to generate cash through sales of chicken and eggs in urban markets. The Somali regional state has been working to implement the GTP II goals with respect to agricultural transformation.

Somali Regional State Irrigation and basin Development Bureau currently engaged in the commitment and construction of sheds and procurement of processing lines for agro-processing sectors comprising Poultry slaughterhouse processing, tomato paste and ketchup processing, large scale milk processing and honey processing fields. The capacity of these agro-processing factories : - 

 

No

Type of Processing Plant

Capacity of Plant

Location

1.

Small Scale Poultry Processing Plant

1000/Hr.

Jigjiga

2.

Small Scale Milk Processing Plant

5,000 liters/day

Kebridahar

3.

Pasteurized Milk Processing Factory

15,000 – 20,000 liters/day

Degahbur

4.

Small Scale Honey Processing Factory

2,000kg/day

Fik

5.

Medium Scale Tomato Processing

5,000kg/day

Hadhigalla

6.

Medium Scale Tomato Processing

5,000kg/day

Jigjiga area

 

 

       RATIONALE FOR THE STUDY

The rationale for the contracting of this consultancy work is primarily the need to plug the agro-processing development strategy of the region, relevant and reliable information that indicates the economic viability and sustainability of the ongoing agro-processing plants in the region, and how they will support the region’s agricultural sector.

This feasibility study is a self-contained assignment with a precise timeframe and expected output; however, to appreciate its significance, it should also be seen as the crucial foundation of a longer and broader cycle of agro-processing development within and beyond the currently ongoing agro-processing work. The consultant team is thus assigned the responsibility to provide a clear and realistic direction to the agro-processing plants, by indicating sustained and a consistent source of input and market for these plants, both in the region and outside the region, including potential export destinations.

Hence the timing of this work is required to be completed within a period of two months, scheduled to provide answers to the main sources of inputs for the agro-processing plants, and in particular the orientation, domestic entrepreneurial choice of local producers and marketing directions for the output.

 

     OBJECTIVE OF THE STUDY

The overall objective of this consultancy work is to determine the economic and social feasibility of the selected four agro-processing lines, including geographic feasibility; determine raw material (input) source both in the region and outside and recommend management style and market.

The consultancy work will have the following specific objectives:

  • Do a feasibility study both economically and socially, and forward strategies to tackle the outcomes of the feasibility study;
  • Do geographic feasibility determining whether the plants are appropriate at the selected areas, and forward recommendations of what needs to be done to make the plants functional at their current location;
  • Map out the current situation in the region in terms of available raw materials, local skills, processing and other infrastructure, marketing channels and available technology;
  • Identify and determine the kind of raw materials required by the agro-processing plants;
  • Determine the raw material source for the plants, what is available regionally and from which parts of the country can the rest be sourced;
  • Market prices and trends of raw materials and its marketing arrangement
  • Identify and map input supply sources from outside the region;
  • Assess the local, regional, national and neighboring countries demand for those products produced by the agro-processing plants;
  • Identify potential marketing outlets, including relevant trade flows, procedures and regulations, mainly in the region, but also in the rest of the country and for export in other African countries or overseas, if relevant to the selected production
  • The typical organizational structure and man power required, the availability of skilled work source and price of labor;
  • Determine existing potential and ways local input production can be stimulated;
  • The Socio-economic Aspects:- Creation of employment opportunities, Utilization of domestic resource, Contribution of the project to regional development,
  • Conduct environment impact assessment, with appropriate recommendations on mitigation strategies;
  • Identify and determine agro-processing plant operation and management methodologies, with potentially handing over management to external bodies;

      METHODOLOGY

The consultancy work (study) should utilize an articulated and coherent methodology which will allow for every practical reference to the above-mentioned agro-processing sub-sectors, and which will show a deep understanding of Somali Region’s markets and suitable knowledge of the production and trading potential.

The study will avail itself of both secondary and primary sources, through desk and research and mostly field surveys as applicable, and will provide the client organization (Somali Region Irrigation and Basin Development Bureau) with detailed, updated, relevant and reliable quantitative data and qualitative information. This means that the consultant will be responsible for gathering, either by himself or with the support of properly trained and briefed field researchers, reliable and comparable quantitative data, and will not only rely on qualitative or anecdotal information.

The study will include a systematic cost analysis and the identification of the MES (Minimum Efficient Scale) for those plants that might be considered as high potential agro-processing sub-sectors by the study (which will include the four lines). Estimating the MES for a certain type of business allows verifying that the business will be able to be competitive on the market even if it cannot reach enormous economies of scale.

The study should also clearly indicate the type of market competition characterizing the economic sectors accessible by the agro-processing plants established. There are cheap similar products that are coming from China, mostly smuggled through the border. In addition, there are similar products produced in the country. Therefore, it will be vital to determine the kind of competition that our agro-processing plants will face.

The study should clearly indicate which sectors of the production are more likely to have a good marketing potential for the to-be established agro-processing lines, and should express the order of priority by providing a ranking of sectors and sub-sectors that will constitute an effective pointer for the strategies of agro-processing development in the region. For each recommended business areas, the corresponding market segment should be indicated and described, as well as the suitable marketing strategy and distribution channels.

Issues of legislation, regulation, standards, licensing and trade procedures connected with the agro-processing sectors of production or services should be looked into by the consultant and the main findings included in the analysis.

      REPORTING

The final output of the consultancy work will be a comprehensive report on the agro-processing study produced in English.

Quantitative data collected during the study, and its analysis, should be included in the body of the report or in an annex. Also qualitative data, such as interview information and anecdotal evidence should also be annexed in or quoted by the report as relevant.

The report should include in its structure a brief and clear Executive Summary in its opening sections, and a chapter of final conclusions and recommendations for action in its final section.

The report should systematically mention and provide details of institutions, organizations and people who have been the sources for gathering data or qualitative information, or the key informants for drawing conclusion and formulating recommendations.

How to Apply

Interested consulting firms who I would like to apply for the consultancy work are required to submit a TECHNICAL and FINANCIAL proposal within 10 days after the announcement is posted. Sealed hard copies should be submitted to the below address

  • Somali Regional StateIrrigation and Basin Development Bureau
  • P. O Box: 346
  • JigJiga
  • Tel: +251-9-13 34 33 32 (Contact Person)
  •  Somali Regional State Irrigation and Basin Development Bureau reserves the right to accept or reject any or all bids.
Filed Under
Consultancy Other
Consultancy Financial
Consultancy Organizational
Consultancy Agricultural

Exchange Rates

Selling
Buying
USD 33.3363 32.6826
GBP 37.3692 36.6365
EUR 36.2332 35.5227
CHF 32.6725 32.0319
CAD 20.9830 20.5716
AED 8.2127 8.0517
Source: Commercial Bank of Ethiopia
Applicable date: Mar 25th, 2020