Uganda: Terms of Reference for the Midterm Review of the IFDC CATALIST-Uganda Project for the period August 2012- August 2014 - 2015

Organization: International Fertilizer Development Center

Country: Uganda

Closing date: 07 Jan 2015

Terms of Reference for the Midterm Review of the IFDC CATALIST-Uganda Project for the period August 2012- August 2014.

Increasing Incomes by Sustainably Commercializing Smallholder Agriculture through Improved Productivity and Market Development

Preface

The International Fertilizer Development Center (IFDC) is a public international organization addressing critical issues such as food security, the alleviation of global hunger and poverty, environmental protection and the promotion of economic development and self-sufficiency.

IFDC’s mission is “*To increase agricultural productivity in a sustainable manner through the development and transfer of effective and environmentally sound plant nutrient technology and agricultural marketing expertise.*” IFDC’s Competitive Agricultural Systems and Enterprises (CASE) approach focuses on the development of sustainable and private sector-based competitive agricultural production systems. A key element to productivity improvements and farmer income is the Commercialized Sustainable Farming Systems (CSFS) approach, which considers not only the primary commodity but as well other crops rotated in the farming system to optimize profitability and soil health. Together, CASE and CSFS ensure that tradable surpluses are both commercially and environmentally sustainable, and that the resulting production systems are embedded in a network of business relationships that add value not only directly to the farmer, but to the wider rural and national economy as well.

The CATALIST-Uganda proposal is presented to the Embassy of the Kingdom of the Netherlands (EKN) in Uganda based on a project similar to IFDC’s CATALIST and CATALIST-2 Projects in Rwanda, Burundi and the DRC also funded by EKN in Kigali. The CATALIST-Uganda proposal is tailor-made to the Ugandan context, incorporating important lessons learned and significant new innovations.

The CATALIST (*Catalyzed Accelerated Agricultural Intensification for Social and Environmental Stability*) Project (2007-

2011) in Rwanda initially focused strongly on the introduction of ISFM (Integrated Soil Fertility Management– combining improved germplasm, mineral fertilizers, organic matter management strategies, and local management adaptations), which led to two to four-fold increases in productivity, reduction in production costs, and consequent dramatic increases in marketable surpluses and farm incomes. Following its mid-term evaluation in 2009, CATALIST intensified its efforts in value chain development and accelerated organizing agribusiness clusters—groups of value chain operators implementing a business idea around a specific commodity in one or more value chains. CATALIST-2 (2012-2016) is a continuation and expansion of CATALIST that will further apply and adapt this approach in the Great Lakes Region of Africa and will emphasize ‘roll-out and scale up’ – increasing the number of agribusiness clusters and the relations among them. Using the market as the key driver for agricultural intensification, CATALIST-2 will use a public-private partnership (PPP) model, and will partner – whenever possible – with national and international (including Dutch) agro-enterprises in areas such as agro-input supply, professional service provision and output marketing.

Based on consultations with the EKN in Uganda, Rwanda and Burundi, stakeholders, beneficiaries and IFDC technical staff, CATALIST-Uganda (2012-2016) builds on the lessons learned from CATALIST Projects in the Great Lakes. From the production side, the project will develop and disseminate highly productive, sustainable farming systems comprised of several commodities, anchored around three to four primary commodity value chains. For the CATALIST-

Uganda Project, the commodity market is the starting point. Using the ‘pull’ of the market, cluster development and market linkages will be encouraged earlier than in the original CATALIST project, facilitated by lessons learned from the CATALIST experience and sharing of regional staff and best practices between the two projects. While cluster development is opportunity-driven, starting with addressing farm-level constraints such as access to agro-inputs and credit, CATALIST-Uganda will facilitate the formation of separate apex-level clusters around each of the value chains allowing cluster actors to tap into national, regional and international market opportunities and agro-enterprises.

Executive Summary

Goal and Overall Objective

The goal of CATALIST-Uganda is to sustainably commercialize smallholder agriculture through improved productivity and market development, resulting in marketable surpluses that raise farm incomes in Uganda, and increase regional food security for the wider East Africa and Great Lakes Region. Starting with the ‘pull’ of the market by working with commodities for which there is strong demand, CATALIST-Uganda will employ a systems approach to develop integrated cropping systems around priority commodities—Irish potato, cassava, soy bean, sunflower and rice—combined with an accelerated cluster development approach appropriate for Uganda. In addition to agricultural intensification, attention will be paid to input market development (both seeds and fertilizer), output marketing, linkages to Dutch and other agribusinesses and improvement of the policy environment.

By the end of CATALIST-Uganda in May 2016, 100,000 smallholder farmerswill have doubled yields, achieved a 50 percent increase in incomes, and produced an annual marketable surplus of 200,000 metric tons of cereal equivalents. This will contribute to the increased rural incomes and trade in Uganda and increased food security in the region.

Approach

CATALIST-Uganda will be built on a market driven approach, focusing on the development of competitive value chains and farming systemsthat will lead to considerable marketable surpluses, contributing to increased incomes and trade in Uganda and greater food security in the region. Starting with the market ‘pull’ of agribusiness development in Uganda, cluster development will focus on agribusiness and entrepreneurship in Uganda at all levels – from local to national. This will allow farmer beneficiaries to seize on Ugandan, regional and international opportunities by targeting markets and trade to neighboring countries,and developing supply chains to national and multinational (including Dutch) agro-processors.To reduce production and transaction costs in the selected value chains, CATALIST-Uganda will introduce both technical and institutional innovations to increase profitability. IFDC will focus on building and strengthening of capacitiesof partner organizations such as farmer organizations, agro-input dealers, agribusinesses, and business service providers to ensure institutional sustainabilityat project exit in four years.

Based on the experience and technical achievements of CATALIST in Rwanda, Burundi and DRC, IFDC will make a significant contribution to a stronger and more productive agricultural sector in Uganda that can contribute significantly to increased rural incomes in Uganda as well as to reduced food scarcity in East Africa and the Great Lakes Region. Market development forms the foundation of CATALIST-Uganda, as it is the market “pull” on which cluster formation and IFDC’s Competitive Agricultural Systems and Enterprises (CASE) approach is based. CATALIST-Uganda will accelerate cluster development, taking advantage of the existing modest surplus production and nascent rural business linkages while simultaneously introducing commercial, environmentally sustainable farming systems that increase yields and decrease production costs per unit product. Market development and productivity enhancement form complementary halves of the virtuous cycle to smallholder agriculture commercialization. CATALIST-Uganda seeks to resolve a long-standing issue impeding agricultural intensification in Uganda—low fertilizer use—by working with agro-input suppliers, extension services, and finance institutions to enable farmers to access and profitably apply mineral nutrient inputs in a farming systems context.

To ensure long-term farmer access to markets that is responsive to dynamic conditions, CATALIST-Uganda will focus on formation of vibrant agribusiness clusters. These will be formed early on in the project, as soon as participating farmers produce tradable and commercial surpluses – at a cost of production and in sufficient quantities to be competitive. The project and its beneficiaries will be attentive to early business opportunities such as linkages with agro-inputs, bulking, storage and credit which form the basis of cluster development at farmer-group level. As these

clusters develop in their transactions and in their business and market sophistication, separate commodity-specific apex clusters will be formed to take advantage of higher-level business opportunities, such as linkage with large/Dutch agro-processors. These apex clusters will access better prices in input and output markets as well as improve the policy and business environment.

Through CATALIST-Uganda, project-affiliated farmers will be able to increase investments in their own well-being as well as in their agricultural enterprises. The project’s focus on improved post-harvest handling, storage and market- linkage through its €2 million Matching Investment Fundand linkage to credit guarantees will increase the economic resilience of these farmers. Through value chain development, agribusinesses will be developed and strengthened, ensuring a strong pull for the marketable surpluses produced. Farmers, armed with the necessary links to input suppliers, agribusiness, business service providers (BSS) and market information, will take advantage of new and expanding markets. A lively and competitive agribusiness environment will be a strong motivator for farmers to produce a surplus, completing the virtuous cycle. Two additional project tools – an €800,000 Innovation Grant Fundand a €1million public works component- will support project interventions. The innovation fund is designed to spur new options for input and output market development, while public works will generate rural employment through the development of infrastructure that enhances productivity and market access, such as terracing, irrigation systems, warehouse/storage rehabilitation and the development of feeder roads.

While CATALIST-Uganda will focus on a limited number primary commodities (cassava, rice and Irish potatoes), it will employ a systems approach to anchor these commodities in integrated cropping systems in which the primary commodity is intercropped, rotated, or relayed into other crops and where possible, integrated with livestock. An option to develop another commodity chain is written into the proposal, to be selected during the inception phase. A systems approach assures that soil fertility and profitability are enhanced throughout a cropping sequence. The balanced mix of commodities and markets reduces the risks of reliance on a narrow commodity base.

The project will target those farmers that possess or have access to a certain amount of land and productive assets and therefore can accept a certain level of risk. The project will focus on farmers that have access to markets and market infrastructure such as roads. The project may also work with medium to large scale farmers in the project’s target areas to serve as nucleus farmers. While the most vulnerable farmers (those with little or no land holdings or assets) will not directly be targeted by the project’s agricultural activities, they will benefit from the project’s public works component, which can assist in asset accumulation. Particular focus will be paid on gender, as the project will promote equitable access to resources and economic returns, and shared household decision-making.

Objectives and Purpose of Midterm Review

The objectives of the proposed midterm review of the CATALIST-Uganda project are twofold:

The first objectiveis to assess the ‘current state,’ of the project. That is, assess the effectiveness of the project to date and its achievement levels against the targets initially proposed in the project document. (These are provided in the Indicator Performance Tracking Table which is contained in separate file marked Anne**x1**)

The second objectiveof the midterm review to consider the ‘future state,’ of the project. This will include assessing if the current project goals are feasible and or relevant. If the current project goals are not feasible and or relevant, which (if any) of the projects proposed amendments should be adopted by the project. Additionally consider proposed revisions by the project to its current implementation methodology and outcome targets.

Deliverables

It is anticipated that the midterm review will produce the following deliverables:

a. An Inception report (to be submitted and accepted prior to commencement of field work) including the following items:

A detailed methodological approach including, key research questions, defined indicators, sampling framework, review matrix and data collection tools etc. The methodology should combine a wide range of methods (e.g. quantitative, qualitative, and participatory), tools and information sources to allow triangulation of information and ensure impartiality.

The Inception plan should retain a degree of flexibility to allow the incorporation of any changes recommended from the inception workshop.

b. A one day stakeholder validation workshop to review the early findings from the draft midterm report. This will be conducted at the end of the field mission.

c. A final draft of the midterm report (accepted by both IFDC & EKN), which will include the following elements:

An executive summary

Will be substantively responsive to all of the questions

Will document lessons learned and best practices adopted by the project

Will document case studies where relevant

Will provide critical analysis of current project implementation strategy and proposed strategy changes to be potentially adopted by the project.

Review questions

The questions listed below are grouped into four thematic areas: ‘Production Push,’ or agronomy, agricultural economics, ‘Market Pull,’ or agribusiness and finally cross cutting issues:

Production Push:

Are participating farmers (female/male) using recommended quality inputs (certified seed/planting material, fertilizers and/or herbicides)? What are (if any) the inhibitors to farmers adopting this technology?

Is there evidence to suggest that participating farmers (F/M) are applying correctly at least two elements of

commercially sustainable farming practices?

Average reported yield per hectare (and acre) of rice, cassava, Irish potatoes, soy bean and sunflower in MT/ha /acre being achieved by participating farmers. How does this compare to the project baseline and national average?

To what extent is the project responding to the EKN priority area of ‘inclusive agricultural transformation’?

Agricultural Economics:

How have average net farm income from rice, cassava, Irish potatoes, soy bean and sunflower changed (in

UGX) and if any can it be attributed to the project interventions?

How have unit costs of production of priority commodities changed? (if any) how do they compare with national averages? Can the changes be attributed to the projects interventions?

Are farmers are able to understand concepts such as labour returns per day, cost of production, net profit and put them into practice? Is there any evidence of farmers keeping records that would support this?

Market Pull:

Is the current Agri-business cluster structure fit for purpose? Is it the best implementation vehicle for the project agri-business activities?

Currently the project is working predominantly from a producer level working up through the value chain and is seeking potential off takers. Is this the best strategy? What other strategies could be employed?

What other alternative options for agribusiness clusters are available to IFDC, would any of these realistically help achieve ‘Objective 2,’ of the project?

Is there scope for realignment of the agribusiness clusters with the Area Cooperative Enterprise (ACE)

model?

To what extent is the project responding to the EKN priority area of ‘doing business with the Dutch’.

Crosscutting themes:

Comment on the impact of the project at the midterm point: Are there any indications that the programme is on track to achieve long term change?

Has the grant’s activities of the project to date, met with and supported the objectives of the project? Has the grant activities of the project been a value added? If grants are to be continued in the future, should they continue in the current format?

How successful has the project incorporated elements of youth and gender into the implementation of its activities?

How well has the project performed in creating an enabling environment for the implementation of the activities and uptake by farmers and agri-businesses?

Given the current agri-financing situation in Uganda (at all levels of the value chain), can the project reasonably expect to meet its goals? What other (if any) financing models should the project be considering?

Does the programme assist beneficiaries (particularly women and youth) to overcome barriers that might

prevent them from exploiting the economic opportunities available to them following the acquisition of new skills?

Assess the level of participation of participants in the project

Is there a good quality results focused M&E system, allowing for periodic reflection and adjustment of activities if needed? Analyse the suitability of the existing data sources and indicators.

What are the less tangible results and unintended effects of the projects (both positive and negative)

Are the project results effectively communicated to the wider public?

Operational/management capacity

Does the project have sufficient operational and management capacity in place to implement/deliver project services and monitor, assess and respond to changes?

Does the project have sufficient operational and management capacity in place to ensure effective and efficient use of resources?

Proposed Future strategies:

What are the prospects for sustainability of CATALIST Uganda project results and which results are most likely sustainable and why?

What if any adjustments would you recommend for the project in terms of geographical coverage, targeted beneficiaries, enterprise choice etc.?

Identify the immediate and longer term strategies that could be adopted for the ‘next mile’ of the project

based upon the plan proposed to the EKN and are available a third file saved as Annex 2.

Is there scope for alignment of project with other related programs/projects e.g. Feed the Future, upcoming

World Bank Agribusiness Cluster Development Project (ACDP)?

Review Approach

The review will inform strategic decision making for the remaining two years of the CATALIST project and therefore focuses on both the output level and higher level project outcomes and related contextual issues. As such a mixed methods approach should be employed.

The consultant will be expected to undertake the following:

Submit proposal outlining the approach and methodology, cost, and timeframe in response to this Terms of

Reference

Desk study and fieldwork preparation (2 days):

Secondary data review

Initial discussions with Chief of Party and Deputy Chief of Party

Study the existing monitoring data and identify information needs

Develop questionnaires/checklists

Produce inception plan

Field work and data collection (21 days):

Field data collection from three regions and different commodities (Irish potato, Lowland Rice, and

Sunflower/Soy Bean) and key stakeholders. Data should be collected from at least one district per region.

Data collection from national level stakeholders

Data processing and reporting (7 days):

Data analysis and draft report preparation***Critical reflection and finalising report (3 days):***

Conduct a validation workshop with project staff and key partners

Finalise report

Review Team Composition and Skills Mix

The team will consist of an international lead consultant, who is expected to sub-contract one or more local consultants. To be eligible to conduct this midterm review the consultant(s) on the review team should have no vested interest in the IFDC CATALIST-Uganda project. The lead consultant shall possess:

Minimum Master’s degree in agriculture, agribusiness, rural development or related subject

Significant experience in agricultural and agribusiness and private sector linkage project reviews

Be receptive to socio-economic dimensions, including gender, youth and labour issues;

Ability to write concise, readable and analytical reports;

Demonstrable experience carrying out similar assignment in Uganda and Eastern Africa will be an added advantage

Proposed Timeline and Budget Indication for the Midterm Review

The duration of MTR is expected to be 33 work days including 21 days in the field. The proposed time frame is completion of field work by early February and submission of the final report by the mid March 2015.

Indicative budget

A total budget of approximately 50,000 Euro is available for this midterm review, this should cover all cost relating to the consultancy. The anticipated key costs are: professional fees, per diems while in the field, travel (international and local), and stationery and communication. IFDC will meet the cost of the validation workshop.

How to apply:

Mode of application

Interested qualified firms should submit their applications; including financial and technical offers, relevant CVs and motivation letter. Applications in a zipped folder should be addressed to the CATALIST-Uganda Chief of Party, via email to dslane@ifdc.org or deposit hard copies at the Office Reception located at: Ground Floor, Studio House, Plot

5 Bandali Rise, Bugolobi, Kampala.

Deadline for applications is Wednesday 7th January, 2015 at 17.00 hours