“ DIAGNOSTIC OF PRODUCTOR ORGANIZATIONS OF THE COFFEE VALUE CHAIN IN THE DEPARTMENT OF SOLOLÁ AND HIGH VERAPAZ, GUATEMALA ” At Heifer International

TERMS OF REFERENCE

CONSULTING

“ DIAGNOSTIC OF PRODUCTOR ORGANIZATIONS OF THE COFFEE VALUE CHAIN IN THE DEPARTMENT OF SOLOLÁ AND HIGH VERAPAZ, GUATEMALA ”

BACKGROUND

Heifer International ( HPI ), is a non-governmental organization in the United States of America, which since 1944 has carried out actions in support of the less favored population of 128 countries. Its mission focuses on: eradicating hunger, poverty and caring for the planet. The philosophy of his work focuses on the “ chain pass ”, which consists of making a family receiving agricultural resources, livestock and knowledge a potential donor to another family, once managed resources are reproduced, thus generating chains of solidarity and sustainability based on mutual support and sharing of resources, knowledge and capacities.

Heifer has had a Guatemalan representative office since 1970. Heifer International Guatemala (HPIG) has as its mission: Contribute to reducing the levels of food insecurity prevailing in Guatemalan communities, giving effect to their right to healthy food and to define their own agricultural food systems compatible with the environment.

Heifer International Guatemala’s vision for 2030 is to ensure that 500,000 producers achieve decent incomes by participating in climate-smart and sustainable value chains.

Coffee and cocoa value chains produce more than 400k million dollars annually, of these, a maximum of 8% reaches producers. The market is concentrated in 8 companies that concentrate up to 75% of the world production of these two products. Value chains have up to 5 intermediaries between the farm and the importer or end customer. The low incomes of producers cause massive migratory effects, abandonment of the countryside and destruction of the family nucleus. In Guatemala coffee is a crop of great economic and cultural importance, it has represented between 1.2% and 1.8% of the Gross Domestic Product in recent years and is present in 21 of the 22 departments nationwide. The crop provides direct employment to between 86,000 and 90,000 people throughout the territory nationwide.Since its inception, great potential for the production of this crop has been observed in the country, however, the coffee industry faces significant challenges, such as climate variability, lack of access to financing, low productivity and lack of adoption of sustainable practices.

The PROMESA Café y Cacao Insignia Program aims to implement disruptive initiatives that contribute to the generation of a decent income for 82,000 families of coffee and cocoa producers small-scale; its area of action is the coffee and cocoa producing areas in the following countries: Mexico, Honduras, Guatemala, Ecuador and Haiti.

DESCRIPTION OF THE CONSULTORY

The aim is to hire a consultant with experience and knowledge in the coffee industry to carry out an exhaustive diagnosis of coffee organizations and producers in the Santiago Atitlán region. This diagnosis aims to understand and evaluate the dynamics, practices and challenges faced by the parties involved in the production and marketing of coffee in this area. The final purpose is to strengthen the coffee value chain in the departments of Sololá and Alta Verapaz to increase the quality of the product, improve producers’ incomes and promote sustainability in the local coffee industry.

CONSULTORY OBJECTIVES

General

Strengthen the coffee value chain in the departments of Alta Verapaz and Sololá to increase product quality, improve producers’ incomes and promote sustainability in the local coffee industry, through a comprehensive diagnosis of coffee organizations and producers in both departments, with a focus on understanding and improving the coffee production, processing and marketing processes in the region.

Specific

• Identify and map coffee organizations and producers in the department of Sololá and Alta Verapaz including their size, location, cultivated area, types of agroforestry systems, and main characteristics, as well as the main strengths, areas of opportunity, challenges and obstacles faced by coffee organizations and producers in the area.
• Analyze the phase of coffee production, cultivated area, varieties, type of agroforestry arrangements, registration of forest incentives in SAF, yields / ha, good agricultural practices implemented, including pest management, diseases and the use of fertilizer.
• Analyze the coffee processing phase, identifying the fermentation processes that take place on coffee farms and in organizations in Sololá and Alta Verapaz, including techniques used, duration, fermentation conditions and its impact on the quality and flavor of coffee.
• Evaluate coffee marketing and sales strategies in the region, including distribution channels, prices and market access.
• Develop a detailed action plan that includes concrete steps to implement the recommendations and promote improvements in the local coffee industry.

GEOGRAPHIC AREA

The study will be carried out in the communities and with the organizations in the area of the departments of Sololá and Alta Verapaz, Guatemala.

SPECIFIC TASKS

The Consultant will carry out a preliminary working session with the Heifer International Guatemala team to delimit the scope of the work.

In the first phase, the consultant will identify and map coffee organizations and producers in the department of Sololá and Alta Verapaz, including their size, location, cultivated area, type of agroforestry systems, yields, good agricultural practices, and main characteristics of coffee production systems. In addition, during this phase, the main strengths, areas of opportunity, will be identified and analyzed, challenges and obstacles faced by both individual producers and organizations in the context of coffee production and marketing in Sololá. Based on the results, the consultant will propose concrete and viable recommendations to improve the quality of coffee, increase producers’ incomes and promote sustainability in the coffee value chain.

In the second phase, the consultant will carry out an analysis of coffee processing, investigating and documenting the fermentation processes, including the anaerobic fermentation processes that are carried out in coffee farms and organizations in the department of Sololá; the consultant will include the evaluation of the techniques used, the duration, the fermentation conditions and its impact on the quality and flavor of the coffee.

In the third phase, the consultant will evaluate the strategies for marketing and selling coffee in the region, including distribution channels, prices and access to local and international markets. It will include identifying opportunities to improve marketing and obtain better prices for producers.

In the fourth phase, the consultant will prepare a detailed action plan in order to implement concrete and viable recommendations that contribute to improving the quality of coffee, increase producers’ incomes and promote sustainability throughout the coffee value chain. This action plan will include specific steps, a clear timeline for each task, and assigning responsibilities to stakeholders. In addition, the resources necessary for the execution of the plan will be identified, budgets will be developed and possible sources of financing will be explored. Likewise, indicators of success will be established and monitoring and evaluation methods will be designed to measure the progress and impact of the actions implemented.

In addition to the specific tasks mentioned above, you must perform other complementary tasks that are considered necessary in the course of the process. These additional tasks will be closely related to the project objectives and may arise in response to emerging challenges or needs identified during implementation.

Coordination and communication will be essential with the project portfolio coordinator and the Program director, to successfully complete this process. For this, periodic and agreed meetings will be held with the parties for the monitoring and scope of the consultancy, logistics coordination, time and necessary resources and operating scheme, as well as the consulting implementation schedule.

DELIVERY

1. A methodological approach document that includes:
   1. Context analysis.
   2. Detailed proposal of the methodology.
   3. Clear and complete work plan, indicating the main activities, those responsible and the schedule.
   4. Formats for gathering information.
2. A document diagnosing the current situation of producers and organizations of the coffee value chain in the departments of Alta Verapaz and department of Sololá. It includes the analysis of strengths, areas of opportunity, challenges and obstacles in the production, processing and marketing of coffee in both departments. The document will also include concrete and feasible recommendations to improve the quality of coffee, increase producers’ incomes and promote sustainability in the coffee value chain.
3. Processing process analysis report documenting coffee processing processes, with an emphasis on anaerobic fermentation.
4. Marketing strategies evaluation report that evaluates coffee marketing and sales strategies in the region, including distribution channels, prices and market access.
5. A detailed action plan that includes specific steps, a clear timeline for each task, and assigning responsibilities to stakeholders.

It is requested to deliver the documents in editable version and in PDF version.

PRESENTATION OF TECHNICAL AND ECONOMIC PROPOSAL

Those interested in participating in the selection process must present a technical-economic proposal to address the different objectives of this consultancy.

The technical proposal must contain as a minimum:

• General information of the professional or consulting team
• Attachments:
  • Curriculum Vitae ( CV )
  • Diplomas, certificates that record experience in the topics described.
  • Evidence of a satisfactory record of performance, integrity, and professional ethics.
  • Copy RTU-NIT.
  • Accounting Bill confirmation.
  • DPI.
  • No. Collegiate.
  • At least 3 reference letters for services provided

Technical Approach

• A detailed methodology of how the task will be carried out, data collection methods, field procedures, quality control practices and data analysis.
• Briefly list and describe the proposed team and staff ( if such is the case ), indicating what role each proposed person will have and the set of skills required for the position.
• A clear and complete work plan, indicating the main activities, those responsible and the schedule.

THE FINANCIAL PROPOSAL SHOULD CONTAIN:

The draft budget must be submitted separately. The draft budget should be detailed enough to allow evaluation of the proposed costs.

• Detailed budget
• Narrative explanations

Heifer reserves the right to request more information to support detailed costs and prices. The currency in which the service contract will be signed will be in quetzales.

CONTRACT DURATION PERIOD

The consultancy lasts 5 months from the signing of the contract.

HONORARY AND DEVELOPMENTS

Interested candidates must present a detailed technical and economic offer, which includes the expense lines that must be considered to achieve the objectives of this consultancy, including support staff fees if necessary, which will work under the coordination of the principal consultant.

Payment method: four disbursements will be made according to the following calendar:

• First Payment: 30% – Week 02.
  • Deliverable: A methodological approach document.
• Second Payment: 30% – Week 12.
  • Deliverable: A document diagnosing the current situation of producers and organizations of the coffee value chain in the department of Sololá. It includes the analysis of strengths, areas of opportunity, challenges and obstacles in the production and marketing of coffee in Sololá. The document will also include concrete and feasible recommendations to improve the quality of coffee, increase producers’ incomes and promote sustainability in the coffee value chain.
• Third Payment: 20% – Week 16.
  • Deliverable:
    • Processing process analysis report documenting coffee processing processes, with an emphasis on anaerobic fermentation.
    • Marketing strategies evaluation report that evaluates coffee marketing and sales strategies in the region, including distribution channels, prices and market access.
    • A detailed action plan that includes specific steps, a clear timeline for each task, and assigning responsibilities to stakeholders.
• Fourth Payment: 20% – Week 20.
  • Deliverable: Report of the training carried out to organizations and producers on issues of sustainable agricultural practices, anaerobic fermentation techniques and quality standards.

OTHER EXPENSES

The expenses included in this consultancy include VAT and ISR.

The mobilization, fuel, lodging and food expenses of the consulting / consulting company, related to the activities carried out within the framework of the consultancy, they must be included in the amount of the economic proposal.

REQUIRED QUALIFICATIONS

• An agricultural science professional or consulting firm with verifiable services in the coffee value chain with a graduate team leader in agronomy or career to finish.
• Demonstrated experience in the coffee industry and in-depth knowledge of coffee production processes.
• Knowledge about the social reality of the Sololá Area.
• Experience in the use of quantitative and qualitative methodologies for rural, social and agricultural research.
• Work experience with participatory methodologies.
• Ability for teamwork and good interpersonal relationships.
• Oral and written communication skills.
• Willingness to move to the areas where experiences were developed to carry out the field study.
• Present documentation that supports academic training, work experience / services.

SELECTION CRITERIA

Criteria

1. Accuracy and relevance of the proposed technical approach and methodology – 30%.
2. The proposal fully complies with the TDRs (general information, activity plan, budget, professional experience, etc.) – 20%.
3. Experience and skills to address the requested – 30%.
4. Budget justification and realistic costs – 20%.

Total – 100%