Ministry of Agriculture of

RA

THE PROJECT IS FINANCED BY THE EUROPEAN UNION AND AUSTRIAN DEVELOPMENT AGENCY
The Project is implemented by the UN Industrial Development Organization and UN Development Programme

ENPARD Technical Assistance:

Producer Group and Value Chain Development
UNIDO/UNDP Component:
Terms of Reference
Value Chain Consultant
General
Post Title: Value Chain Consultants
Starting Date: June, 2015
Duration of assignment: 3 months (with possibility of extension)
Project: ENPARD Technical Assistance: Producer Group and Value Chain
Development
Project ID: 00091028
Location: Yerevan with travel to the regions

Introduction and Background

With funding from the European Union, the European Neighbourhood Programme
for Agriculture and Rural Development (ENPARD) supports the Government of
Armenia in ensuring an efficient and sustainable agriculture that contributes to
better living conditions in rural areas. Within ENPARD Armenia a technical
assistance component focuses on producer group and value chain development.
This component is implemented by UNIDO and UNDP with funding from the EU
(2.4 million euro) and co-funding from the Austrian Government (1 million euro).
In particular the project aims to strengthen producer groups, effectively engage
producer groups in value addition activities, strengthen value chains that provide
improved access to affordable, better quality food, contribute to the
development of rural areas and improve access to local and international
markets, and ensure the introduction of environmentally-friendly farming and
food processing practices. Direct beneficiaries of the project include agricultural
producers, members of producer groups and their employees, their families and

SMEs along the value chains as well as Armenian consumers. The project also
will focus on women, youth, and other vulnerable groups.
The technical assistance component of ENPARD, implemented by UNIDO and
UNDP, has three primary outputs:

Output 1: Strengthened and newly established primary producer groups.

Within the targeted value chains and marzes, the project will develop
effective, sustainable new producer groups as well as assist and
strengthen existing ones in the various stages of their development.
Output 2: Producer groups effectively engaged in value addition. The
project will support the building of physical infrastructure as well as human
capacity and skills that enable producers to add value to primary
agricultural production.
Output 3: Strengthened value chains that provide improved access to
affordable, better quality food. The project will identify and develop key
intervention points at any level within the selected value chains that will
benefit not only stakeholders of those value chains but also Armenian
consumers locally and nationally.

Purpose
This consultancy is situated within Output 3, described above, with the objective
of producing a comprehensive analysis of the selected value chains. The selected
value chains include:

High value field crops, with a focus on buckwheat and lentils;

Non-traditional and high-value vegetables;
Berries and fruits; and,
Dairy.

Two consultants will be hired, each of which will perform two value chain
analyses in the three month period. A potential breakdown of consultancy
responsibilities may be as follows.

Consultant 1: High value field crops and high value vegetables

Consultant 2: Berries and a focused sub-section of the overall fruit sector

The value chain report will provide the supporting analysis and information to
enable the design of the activities and interventions which will be undertaken in
Output 3to resolve value chain constraints on the marz level, and to boost the
earnings of farmer groups and value adding groups engaged in the selected
value chains.

Methodology
The consultant will apply UNIDOs methodology for value chain analysis,
available online.1 The final written report is expected to conform entirely with the
structure discussed in this methodology. In general, the consultants work will
include research and analysis, in the following phases:

Desk research: Using existing documents and other information sources,

the consultant will undertake a literature review to filter basic information
into the structure of the value chain analysis described in UNIDOs
methodology.
Interviews with stakeholders: Specific information will be found
through interviews with experts in the public, private and civil society
sectors.
Field interviews and focus groups: Focused discussions with farmers
and other value chain actors will provide the bulk of the insight to be
included in the analysis.
Analysis and reporting: Using the information collected, the consultant
will conduct a comprehensive analysis, and present the analysis in the
structure specified in UNIDOs methodology.

Expected Results
As described in detail in UNIDOs diagnostic tool for value chains, the analysis
will include:

Value chain mapping, including a graphical representation of the value

chain segments, actors and supporting services;
Data on production, input supply, farm structure, agronomic issues,
numbers of producers, production costs, gross margins, and primary
constraints to production;
Data on post-harvest issues relating to technology, storage capacities,
transportation, post-harvest loses, gross margins of transporters/traders
and of warehouse operators if relevant, and primary constraints;
Data on processing and value addition, relating to technology, processing
capacities and usage, knowledge and capacity of actors, gross margins of
various processing units and for the production of various products, and
primary constraints;
End market characteristics, including key product characteristics
demanded by various markets, quality standards, market sizes for a
variety of processed and fresh products, wholesale and retail margins, and
market and marketing constraints;
An analysis of the value chain governance, the lead firms, a
characterization of the value chain as suppler driven or market driven, and
an analysis of value capture in the chain;
A review of key points impacting environmental sustainability and energy
use in the value chain, and recommendations of mitigation measures;

1 http://www.unido.org/fileadmin/user_media/MDGs/IVC_Diagnostic_Tool.pdf

An analysis of the financial needs by segment and the degree to which

these needs are serviced by the existing financial actors, and the
associated risk, a review of the formal and informal sources of finance, and
a brief sketch of potential financial mechanisms to introduce;
A description of the overall business environment underlying the value
chain, touching upon access to finance, food related laws, business
registration issues, the cultural context, the relevance of agricultural
research institutions and extension services, and other issues; and,
Recommendations for further action formulated as interventions to be
undertaken by the project or other actors (including the government and
private and civil society organizations); the recommendations will not be
as a value chain upgrading/development strategy, but would provide an
initial outlie of such a strategy which could be developed using the data
and analysis provided in the overall value chain analysis.

The analysis will be provided as a written report in English language. A

PowerPoint presentation may be required to communicate specific elements of
the analysis.

Reporting Arrangements
The consultant will report to the UNDP Component Leader, but receive technical
direction from the Project Coordinator and UNIDO Component Leader, as well as
intermittently from the Project Managers at UNIDO HQ in Vienna. During the
period of work, the consultant will be an integral part of the UNIDO/UNDP team,
and will discuss progress and receive coaching on approximately a weekly basis.

Timing
The consultancy will begin as soon as the consultant is selected and run for
minimum of three months.

Qualifications
To successfully perform these duties the candidate will possess:

5 years of experience and demonstrated understanding in agricultural

value chain development, including the latest thinking and delivery
models for agribusiness and producer group development. Solid
understanding of the socio-economic conditions of agricultural producers
and processors.
Strong analytical skills, including business planning and financial
modeling.
Demonstrated donor-funded project experience, demonstrating detail
orientation, proactive attention to outcomes and expectations, and the
ability to understand and effectively use information.

Established networks among development agencies, private investors and

consultants involved in agribusiness and value chain development,
agricultural marketing and producer group development.
Previous experience in completing value chain analyses or feasibility
studies for agribusiness development.
Experience writing project reports in English.
High level of interpersonal skills; able to establish and maintain
harmonious working relationships with superiors, co-workers, clients and
suppliers.

Education: Advanced university degree in business administration, marketing,

and/or agricultural economics.
Languages: Fluency in written and spoken English and Armenian.
Core values:
Integrity
Professionalism
Respect for diversity
Core competencies:

Results orientation and accountability

Planning and organizing
Communication and trust
Team orientation
Client orientation
Organizational development and innovation