Team: Programs | Commitment: Consultant | Location: Pakistan

STTA: Contract Farming Specialist for Citrus, HV/OSV and Mango

Project Description

The U.S. -Pakistan Partnership for Agricultural Market Development (AMD) activity in Pakistan is a USAID-funded activity implemented by CNFA with the goal of supporting the development of Pakistan’s commercial agriculture, particularly through improving the ability of Pakistan’s agriculture and livestock sectors to meet both international and domestic demand and requirements in targeted product lines in Citrus, Mango, High value/off season vegetable and livestock. AMD envisions transforming the four targeted product lines into efficient, private sector led value chains that deliver competitive products to domestic and export markets. AMD’s targeted training, matching grants, and technical assistance will leverage private sector investment and encourage innovation. Together these approaches will support upgrading, streamline supply chains, optimize profit margins, increase participation of women entrepreneurs, and ultimately make Pakistani mango, citrus, meat and HV/OSV more profitable and more competitive.

 

Background

Exporters of Mango, Kinnow and HV/OSV purchase all, or nearly all, their commodities directly from farmers without oral or written contracts based on crop quality and volume assessments made during the growing season by in-house purchasing agents. The exporters report they have very high annual turnover in the farmers, from whom they make purchases, usually exceeding 50%. Exporters also purchase significant volumes of commodities from wholesale markets. As a consequence, exporters face unknown volumes of products available due to which they are unable to make commitments and assure delivery to their buyers in international markets.

 

The use of contracts between packer/exporter and farmer that specify a base (minimum) price, quantity, quality and timing of the delivery could be a solution to overcome the long-standing informal business model that does not promote a transfer of technology, efficiencies or improvements of quality. Contract farming is based on three main premises:

The exporter commits in advance to purchase a crop or volume and the farmer/producer commits to delivering it.

The contract rests on specific crop production practices to be conducted by the farmer in growing the crop and on

 inputs or services provided by the exporter.

There is an implied differential allocation and sharing of production risk and market risk.

 

When undertaking contractual farming, exporters also need to mitigate their risks. To mitigate their risk, exporters need to provide farmers, at a minimum, with technical advice on crop production practices. As time passes and trust is established, this support can be expanded to include agro-inputs: seeds, fertilizers and crop protection chemicals. To mitigate production risk, farmers need to avail themselves of the inputs offered and be willing to adapt new practices.

 

Objectives of the Technical Assistance

The prime objective of this consultancy assignment is for the ISTTA to work with AMD’s partner exporters in Citrus, Mango and HV/OSV and build their capacity so that they can undertake contractual farming. Key in this capacity building will be to show exporters the benefits and importance of contractual farming.

 

It is envisioned that the ISTTA will spend 6 working days on each of the three product lines (Citrus, Mango and HV/OSV). This will include the development of training modules, visits to exporters for one on one meeting to discuss contractual farming and review the training modules developed.

Place of Performance

Pakistan with travel to grantee sites in Punjab and Sindh

Estimated Period of Performance

May 1st to June 15th 

LOE

24 working days (including 2 travel days, 19 days in country and 3 days report writing and planning from home base)

Assignment Scope

  • Coordinate with the AMD marketing and program team for development of work plan including exporter visit schedule;
  • Develop training modules for Citrus, Mango and HV/OSV to build capacity of exporters on contractual farming;
  • Conduct visits and one on one meetings with exporters of Citrus, Mango and HV/OSV to discuss the benefits and need for contractual farming including overview of the training modules developed as well as what kind of inducements exporters should offer to farmers (technical information, inputs etc.);
  • Conduct at least one training session for each of the 3 product lines (Mango, Citrus and HV/OSV);
  • Final report on modules developed, trainings delivered and future recommendations/ steps;
  • Any other tasks assigned by the COP and CTA relating to the evaluation of fresh vegetables via sea shipment at importing country. 

Deliverables

  • Submit a detailed work plan and site visit plan within 1st week of arrival in country;
  • Training modules to undertake capacity building workshops for contract farming for each of the 3 product lines;
  • Submit a comprehensive Final Report which includes a report of the training modules developed; # of trainings conducted, # of attendees, details on the training sessions including outcomes of the sessions; and Recommendations and Next Steps.
  • Any other task assigned by COP and CTA. 

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