INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.

The consultancy’s main objective is to develop business models and sequences of recommendations for farmers who are potential beneficiaries of CUSAF contracts with information from the Loreto, Amazonas and San Martín regions.

The consultant will be responsible for the following specific objectives:

• Systematize and analyze information produced and collected in the field by the AgroFor Project in the Loreto, Amazonas and San Martín regions, from small producers that can contribute to the design and implementation of effective incentives for the adoption of CUSAF.
• Develop six (06) business models, one (1) for individual producers and one (1) for associated producers based on two (2) prioritized agroforestry products, for each of the three regions.
• Prepare a sequence of steps or structured recommendations for individual producers and for associated producers indicating how they can access incentives, including public and private financing to improve the production and productivity of their crops, and thus add value to CUSAF.

The consultant will develop the following activities:

1. Workplan

– Define a work plan that establishes: how and in how long the activities will be carried out, methodology, resources to be used, as well as a travel schedule. The work plan must also indicate what improvements or elements are suggested regarding the structure of both business models described in Annexes I and II (individual and associated producers) based on the experience of the consultant.

2. Systematization and analysis of information from CUSAF beneficiary producers

– The consultant will systematize and analyze information collected from the field and studies carried out within the framework of the AgroFor project . The following documents will be shared by GGGI:

• Study of current commercial interest and potential demand for “zero deforestation” coffee and cocoa and of sustainable origin from San Martín, Amazonas and Loreto (prepared by GGGI)
• Matrix for evaluation and prioritization of products (Deliverable 1 Consultancy: Study of the offer of agricultural products that are currently being developed by producers who could potentially access CUSAF)
• Agroforestry at the service of family farming in Peru. A proposed definition of agroforestry to facilitate institutional alignment in favor of the design of interventions and policies that encourage the adoption of this practice in Peru . Robiglio, Suber and Castro. 2022. Lima, Peru: CIFOR; Lima, Peru: ICRAF.
• Module 2: Assignment in use for Agroforestry Systems in the Amazon: Potential beneficiaries, geographical distribution and estimation of the potential contribution to the climate goals of Peru. Robiglio, Vargas, and Suber 2018. Lima, Peru: CIFOR; Lima, Peru: ICRAF.
• From FACTOR to ACTOR Systematization of the SERFOR Strategic Planning Workshop for the Promotion and Management of Agroforestry with emphasis on Assignments in Use for Agroforestry Systems – AgroFor Consortium.
• Community Participatory Diagnosis carried out in prioritized hamlets in the Amazonas region – CIFOR/ICRAF – AgroFor
• Community Participatory Diagnosis carried out in prioritized hamlets in the San Martín region – CIFOR/ICRAF – AgroFor.
• Study on the aspirations of small producers – CIFOR/ICRAF – AgroFor
• Study that includes the analysis of the agroforestry options identified – CIFOR/ICRAF – AgroFor
• Study of Forest Value Chains in Moyobamba, San Martín: Opportunities for small producers – CIFOR/ICRAF

3. Validation of preliminary prioritization of agroforestry products

– GGGI will provide a preliminary product prioritization matrix containing information related to:

• The prioritization of products in the Regional Governments of San Martín, Amazonas and Loreto
• A preliminary prioritization of SERFOR agroforestry products.
• Field information prepared by CIFOR-ICRAF

– The consultant will use the preliminary prioritization of forestry and/or agroforestry products included in the matrix made by GGGI, which indicates the following products for each region: (1) San Martín Region: coffee and cocoa, (2) Region Amazonas: coffee, livestock, sawn timber, (3) Loreto Region: peach palm, round timber.

– The consultant will validate this preliminary prioritization (which was prepared using secondary information) with the three Regional Governments and SERFOR to propose a final version of Business Models. In addition, you must compare the validation with the products promoted by the Regional Governments, main product promotion initiatives through the Ministry of Economy and Finance (Competitiveness Plans, value chain analysis), Ministry of Production, Ministry of the Environment, others international cooperation initiatives, etc.

4. Business models

– The consultant will develop six (06) Business Models for the products prioritized in the previous activity for the two types of producers (individuals and groups of producers through associations or cooperatives) and for each region:

• San Martín Region (02 business models- for example, coffee and cocoa): 01 business model for individual producer, 01 business model for associated producers
• Amazonas Region (02 business models- for example, coffee, livestock or sawn timber): 01 business model for individual producer, 01 business model for associated producers
• Loreto Region (02 business models, for example peach and round wood): 01 business model for individual producers, 01 business model for associated producers.

– The Business Models that the consultant develops, in addition to including what is described in the annexes: Annex I. Business Model for Non-associated Individual Producers and Annex II. Business Model for associated producers/cooperatives must incorporate:

• An approximation to the demand for prioritized products. This will come from three sources:

(a) the studies previously prepared by GGGI within the framework of the AgroFor project on the supply and demand of agroforestry products and

(b) the consultant will use the information systematized by the GOREs and/or SERFOR

(c) Others national and international sources.

This information must include the product format (example: coffee beans or ground coffee), target market, and if there are any requirements for said market (quality seals, certifications, etc.).

5. Sequence of steps/recommendations for producer access to incentives and financing

– The consultant will prepare a sequence of steps/complementary recommendations for each of the six (06) business models that describe how the two types of producers (individual and associated) can access incentives and financing, whether public or private. considering that they are CUSAF beneficiaries.

– GGGI will share a list of prioritized and potential public incentives for CUSAF grantees.

COORDINATION AND LOGISTICS

For the elaboration of the Business Models, the consultant will make at least 1 trip to each region (Amazonas, San Martín and Loreto) to collect information related to individual producers and associations, the prioritized products, in order to complement the information provided by AgroFor.

The consultant will document the methods used (interviews, surveys, observation, etc. ) used in the field. The complementary information that the consultant decides to use must be proposed at the beginning of the consultancy and mentioned in the Work Plan, to be validated by GGGI. Likewise, it will attend periodic coordination meetings with GGGI and SERFOR.

Products

• The content will be prepared in Spanish for the purposes of the AgroFor project
• Payment will be made once the conformity of the product is guaranteed by GGGI.
• All the deliverables that are generated within the framework of this consultancy must be included in a digital repository including sources of primary and secondary, empirical, technical and scientific information. Likewise, it must have appropriate means of verification including records of participants in meetings and/or workshops, minutes, notes, photographs or other documents as evidence of information.
• Deliverables will be submitted by email to GGGI on the corresponding dates.
• The final document will have a maximum number of pages to be coordinated between GGGI and the consultant. In addition, the final product must contain graphics and diagrams that allow easy reading.

Coordination and reporting

• The consultancy will last 80 calendar days.
• The review of the products by the focal point at GGGI will take place within a maximum period of five (05) calendar days, after the delivery of the products. After making the observations and raising the comments in coordination with the focal point in GGGI, the product will be approved in its final version during two (02) calendar days.
• GGGI will provide all the information available within the development framework of the consultancy, as well as the necessary contacts for the collection of information at the regional and national level.
• During the development of the consultancy, and during any stage, GGGI may require meetings, information on the progress of the consultancy to the consultant, as well as changes associated with the development of activities.
• The consultant will not receive payment for their services until full compliance of the product to be delivered has been given.
• It is the consultant’s responsibility to respect the delivery dates detailed in the terms of reference.

Meetings, trainings and trips

• Once the consultancy has started, periodic meetings will be established between the consultant and GGGI, with SERFOR’s accompaniment.
• The meetings will be coordinated between the consultant and GGGI, and will take place in person or virtually, prior agreement between both parties.
• After each meeting, the consultant will prepare and send a detailed minute of the meeting agreements via email.
• The workshops, presentations and/or training will be coordinated between the consultant and GGGI, and will be held in person and participation will be evidenced by means of an attendance list with the criteria to be coordinated with GGGI.
• Trips to the Amazonas and San Martín regions must be covered by the budget assigned for this consultancy. The consultant will be responsible for travel, lodging, per diem and any other expense incurred in making visits to the regions. This is a lump sum consultancy.
• In total, the consultant will make at least 3 trips to the regions of Amazonas, San Martín and Loreto (1 to each region at least).

EXPERTISE REQUIRED

The professional must appear as a natural person (not as part of a company or legal entity), and must meet the following requirements:

Academic training:

Degree in Forest Engineering, Agronomy, Food Industries or related careers, specializing in forestry business development.

Overall work experience:

• Minimum of ten (10) years of general work experience in public and/or private entities.
• Minimum of five (05) years of work experience in developing productive forestry and/or agricultural activities.
• Specific work experience:
• Minimum of four (03) years in design and implementation and/or consulting of agroforestry systems in the Amazon.
• Minimum of four (04) years developing business plans for the agricultural and forestry sector.
• Experience in projects related to climate change issues is an advantage.

The following may be included in this section:

• Request for an additional document to be submitted for application in addition to the cover letter, and CV
• Selection method/process: Competitive
• Timeline of selection: 10 days

The following text should be added for all TORs. Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment.

COMPLEMENTARY INFORMATION (ANNEXES)

ANNEX I

Business Model for Non-associated Individual Producers

The business model that is characterized will analyze the necessary conditions that will allow the family producer, owner or potential owner of a CUSAF and not associated, to improve their economic perspective and better integrate into the dynamics of the market, whether local, national or international.

This business model will have as a minimum content (subject to the consultant’s suggestions) with the following information:

Offer

1. Analysis of the supply of the prioritized crop (average annual productivity, annual/seasonal sales volume)
2. Current area: does the producer have sufficient area and productivity to be commercially profitable? What percentage of your sale is reinvested in improving your crops?
3. Major issues with sales?
4. Sales method (broker, association/cooperative, other)
5. Price analysis (sale price and variations + reasons for variation)
6. Needs to improve sales:

• • • a.improved seed
    • b.Agricultural supplies
    • c.Knowledge to improve sowing, cultivation, harvest, post harvest
    • d.Commercial information to expand points of sale
    • e.Market information for specific improvement of product quality
    • f.Information on certifications/seals to improve the sale value

Identification of barriers

2.1 Support for agricultural/agroforestry activity

to. State support: does the producer participate as an individual or part of his community in any State program to improve crops or agricultural or forestry products?

b. Cooperation support: does the producer participate as an individual or part of his community in any international cooperation program to improve crops or agricultural or forestry products?

c. Access to credit: has the producer contracted debt to improve his crops? Amount? Term? How was your experience paying off the debt?

2.2. associativity

to. If it’s not associated, why not, and what would have to happen to be interested in associativity?

Business Model Structure

1. Surface: minimum area to cover living costs, cultivation and future sales projection
2. Productivity: minimum production to cover living costs, cultivation and future sales projection
3. Technical assistance approach: point out priority areas for the producer so that he can increase the quality and quantity of his production
4. Associativity: propose ways to group the individual producer based on the diagnosis of the reasons for their current status as non-associated so that they can be the object of State incentives and commercial opportunities of private capital in the future.
5. Commercial Position: indicate in practical terms in the short, medium and long term how the individual producer can prioritize aspects of the business cycle (planting, cultivation, pre-harvest , post-harvest, marketing) to improve their income and well-being.
6. Management: Capacities required to be able to manage the business and promote its growth.
7. Others that the consultant can propose to enrich the recommendations for non-associated producers in order to access incentives from the State and the private market with a focus on giving value to the CUSAF as an element of traceability for the crop.

ANNEX II

Business model for associated producers/cooperatives

The business model that is characterized will analyze the necessary conditions that will allow associated producers or that are part of a cooperative, understand the advantages and disadvantages of associativity, and evaluate the possibilities of integrating CUSAF holders or potential holders, improving their position vis-à-vis the market and the state.

This business model will have as a minimum content (subject to the consultant’s suggestions) with the following information:

Offer

1. Analysis of the supply of the prioritized crop (average annual productivity, annual/seasonal sales volume)
2. Current area: does the association have associates, area and productivity sufficient to have commercial profitability? What percentage of your sale is reinvested in improving your production?
3. What is your sales method? Do you have problems with this method?
4. Price analysis (sale price and variations + reasons for variation)
5. There are needs to improve the product sales process: What are they?

Identification of barriers

1. State support: Does the association/cooperative participate in any State program to access technical assistance or improve its agricultural and/or forestry productivity?
2. International cooperation support: Is the association/cooperative part of an international cooperation program whose purpose is to provide technical assistance or improve productivity?
3. Access to credit: Has the association/cooperative acquired a loan from the financial system to allocate it to its economic activity? Amount? Term? How was your experience paying off the debt?

Business Model Structure

This structure seeks to list the basic issues to be analyzed and described by the consultant when presenting the business model of the associations/cooperatives:

1. Business Description
2. What assumptions are considered in the business model
3. product analysis
4. Demand analysis (includes Customer Identification)
5. The model takes into account existing public incentives: what are the prioritized public incentives and what is the mechanism to access them
6. The model takes into account the existing private incentives: what are the prioritized private incentives and what is the mechanism to access them
7. Strategic alliances have been identified and/or generated with public and private actors: with whom and for what purpose
8. Financial economic evaluation of the business
9. Summarize production plan with projection
10. Summarize the sales plan with projection
11. What is the investment that this business requires
12. What is the profitability of this business (Evaluation of profitability VAN, IRR)