MARKET ANALYSIS CONSULTANCY ON LAKE TURKANA FISH VALUE CHAIN

Sustainable livelihoods through Value Chain Development for Pastoral Communities in Turkana.

BACKGROUND Turkana County has an estimated population of 800,000people. Its one of the ASAL in Kenya situated on the North West of the country. As a county it’s highly dependent on pastoralism, which is the dominant socio-economic backbone of the county. Turkana County is characterized by low fertility soils and a highly variable rainfall pattern, historical marginalization, a low population density, poor quality and low access to basic services, poor infrastructure and political marginalization. One key consequence of the interactions of the above factors is the limited social organization structures of the local community, a situation which is further aggravated weakened by the widely dispersed, and highly mobility of the local population.. Both government and other sources indicate that over 95% of the population is said to be living below the absolute poverty line while ground evidence seems to indicate that a large part of the population is disproportionately unsupported by the development processes in operation currently. Oxfam Kenya Program has been working in Turkana County for many years undertaking humanitarian activities to address the various challenges and especially the food insecurity challenges using both short and long term strategic interventions.

In recent years, there has been a shift in the mode of approach to the food insecurity challenge esp. in such fragile environments. The use of “market mechanism” type of interventions is slowly taking a more prominent role as a long term developmental strategy. The markets interventions aim at” using the market to strengthen the local economy, to avoid a distortion of the local economy and to enable the target communities to regain their autonomy”. Preliminary evidence and experiences gained from a number of on going projects and activities undertaken by Oxfam Kenya Program in Turkana indicates that there is a strong relationship between Economic security and Food security. There is on going discussions and learning on the possibility of strategic interventions towards improvement of the local economic security with the aim of triggering and stimulating LED (Local Economic Development). It is anticipated that this will contribute to the improvement of local living conditions, access to basic services and in the long run act as a strategic DRR preparedness and resilience tool of mitigation. The project entitled “Sustainable livelihoods through Value Chain Development for Pastoral Communities in Turkana” supported by the EU and Oxfam is one such an attempt. In Turkana County, the Fisheries sub sector plays an important and pivotal role, both socially and economically. It provides livelihood opportunities (as a source of food, income, employment) for households that directly depend on fishing. One distinction of the sub sector is that it provides a steady source of livelihood even when drought affects most parts of the county where instances of the dominant livestock sector suffer. From an economic point of view, the sub sector supports the fishing industry which is interconnected with both the local, national, regional economies through its various related functions like fishing; fish cleaning and processing, fish trade (Through Local traders and agents) and transportation. The fish industry is contributing towards alleviating poverty in the local context through the creation of wealth, increasing employment opportunities and forming the basic framework in supporting other alternative livelihood options outside fishing. The fishing sector has the potential to contribute more than it’s currently doing were it not for a number of challenges and constraints that this project seeks to address.

Oxfam Kenya Program is interested in undertaking a detailed Value chain Analysis of the Lake Turkana Fish vale chain in order to : 1. Inform Oxfam on the sustainability of its specified market related interventions in further stimulating the development of Lake Turkana Fish value chain. 2. Identify potential secondary economic opportunities for development that can be undertaken and exploited by women, as well as the youth and men who have” dropped out “from the ‘pastoralist –economy’. 3. Make a series of recommendation on maximizing the benefits to the producers and local traders of fish. 4. Identify possible issues and strategies that can be used to undertake a successful policy/Advocacy campaign in the project area. 5. Analyze the potential fish market and advice on: • The potential secondary markets for fish, and their segmentation • Entry/Regulatory requirements for fish business. • Quality and other market standards.

1. TERMS OF REFERENCE FOR THE CONSULTANCY. Undertake a detailed Market Map and value chain analysis (VCA) of the Lake Turkana fish sub sector by identifying: (a) The key Primary chain actors along the fish value chain: (from the Producers and inputs supply to the end consumers) identify who they are, possible numbers, their key functions, key operational challenges and possible interventions. Included in the analysis of the primary actors indicate the changes in prices along the value chain together with the margins and other economic aspects like market share of the fish and its products transactions along the value chain. Also it is expected the consultant will evaluate the social aspects, such as participation and governance along the chain as well as the key chain blocker(s) and enabler(s). (b) The key chain supporters/Support services (secondary actors) of the chain and their role and services. Identify the challenges experienced in offering/accessing their services. Identify any gaps currently existing in service provision and who can best provide such services. c ). Examine the regulatory and policy framework that affect both the Lake Turkana fish sub sector, and secondary markets, outlining the key provisions, level of implementation and the challenges involved in their implementations. The consultant will recommend strategies that will strengthen advocacy activities and maximize engagement with policy making processes, both locally and at national level. (d) Analyze the over-all business environmental under which the fish sub sector is operating under in Turkana and link this to the national level. (e) Analyze the gender and power dynamics along the value chain and advice on areas for improvement in maximizing benefits to Women. (f) Undertake a desktop research and advice on persons or institutions that will provide basic statistics on the potential of lake Turkana Fish sub sector: Annual production trends (Fish capture and landing), volumes of trade from Lake Turkana, end market quality requirements( exports, regional and national markets), possible market trends in fish and its by products, major trends affecting the fish and its by products , the production costs and the economic analysis of the fish sub sector, pricing and packaging.

Based on the detailed analysis of the above, Provide: 1. A detailed analysis of the overall market opportunities for the various products within the overall fish sub sectors that can potentially be exploited: Locations, quantities, quality and other product requirements. Examine if the adoption of sustainable fish production certification processes would be a potential to examine. Of particular interest to the project is the possible inter linkages between the fisheries sub sector and other business services e.g. the basket and mats making practices by Turkana women. Where possible, the consultant will provide data that can be used to make decisions on future investment opportunities. 2. Delineate and examine the different Market channels of Lake Turkana Fish and fish products, outlining opportunities for exploitation, additional investments, challenges and possible interventions. A market segmentation is expected with a possible examination and decision based on fats on the best sub sector to focus on esp. by women and the youth. 3. An analysis of the basic business support services needed to strengthen the market system in support of the poor producers. Identification of possible service gaps existing that needs to be filled. 4. An analysis of the competitors of lake Turkana fish value chain, identify the basis for the competition and outline existence for any USP for the competitors and the perception of consumers on Lake Turkana products. 5. Advice on the possibility/modalities of branding Lake Turkana fish and its products. 6. Look at the proposed activities in the project document and subjected them to a critical examination on their suitability and sustainability versus the results from the VCA. Make a series of recommendation on areas of improvements and interventions. 7. Make Concrete recommendation (s) for a functional business model for Lake Turkana Fish value chain.

1. TIMEFRAME: Time Frame for the consultancy is 30 days. The whole research process will take approx 30 days to be completed, this will include: Interaction with Oxfam Management team, field teams, beneficiaries, key stakeholders and report writing. The expected date of the work is Early April 2013 and the final research report will be produced by Early May 2013.
2. CONSULTANT/ TEAM QUALIFICATIONS The Consultancy team must be multidisciplinary as the Analysis is an opportunity to set the overall direction of the proposed program. At the minimum, the consultant(s) must possess the following:
   i. At least a Masters Degree in Business related Disciplines, Development Studies or Economics, with a minimum of five (5) years demonstrated experience in business research and/or Practice ii. Demonstrate a good understanding of the Arid and Semi Arid Areas (ASALs) with practical working experience or research/Surveys in such environments. iii. Experience of effective interaction with local and national institutions, government departments, and Business service providers. iv. Be Conversant with current business models and practice around the Fish sub-sector in the region. v. Practical application of cross cutting themes like gender mainstreaming, and gender competence, M&E, Advocacy. vi. Good spoken and written communication skills in English and Swahili. vii. Proven experience of using participatory tools and methodology. viii.
   ix. Excellent analytical and report writing skills.
3. EXPECTED DELIVERABLES The required outputs of this consultancy will be as follows: i. An inception report (maximum five pages) outlining the approach/methodology and execution programme/timetable. This report shall be submitted for review and approval by Oxfam GB two (2) days after the signature of the contract, but before commencement of the work. ii. Data collection tools which shall be submitted within two days after acceptance of the methodology for review and approval by Oxfam GB. iii. Draft VCA report which shall be submitted within five days after completion of the field iv. Presentation of the key findings to the stakeholders. v. The final report which shall be submitted within five days after the stakeholders’ dissemination workshop and shall incorporate both Oxfam and stakeholders inputs.
4. VALUE CHAIN ANALYSIS REPORT 5.1 The Value Chain Analysis Report The production of the VCA report will be the responsibility of the consultant covering all the aspects as outlined in the ToR. Oxfam and its partners will be responsible for coordinating the exercise. The VCA report will be: i. Produced in English language and should be simple in expression and easy to understand. ii. Maximum of 30 pages with some short annexes. iii. The report format and text, should be an A4 paper size and a legible font (e.g. Times New Roman 11 or 12, Arial 10 or 11). iv. The team will be expected to submit at least two hard copies and one electronic copy of the report by the agreed deadline.

5.2 Outline of the Report The VCA report should contain the different elements mentioned below. All parts should be clearly distinguished from each other and of sufficient quality. i. Cover page ii. Table of contents iii. An executive summary that can be used as a document in its own right. It should include the major findings of the VCA and summarise conclusions and recommendations. iv. The objectives of the VCA. v. The main questions and derived sub-questions. vi. A justification of the methods and techniques used (including relevant underlying values and assumptions, theories) with a justification of the selections made (of persons interviewed, villages or activity sites visited). vii. A presentation of the findings and the analysis thereof (including unexpected, relevant findings). All research questions should be addressed, paying attention to gender issues. viii. Conclusions, which will analyse the various research questions. Conclusions will have to be derived from findings and analysis thereof. ix. Recommendations should be clearly related to conclusions but presented separately. Recommendations should be practical and if necessary be divided up for various actors or stakeholders and include guidelines of how they can be implemented. x. Report annexes. The reporting style should be clear and accessible. References to sources used, such as interviews, literature, reports, must be given. Confidentiality of information: all documents and data collected will be treated as confidential and used solely to facilitate analysis. Interviewees will not be quoted in the reports without their permission 6. BID REQUIREMENTS

Firms or Consultant(s) who KNOW that they meet the requirements should submit a maximum of 10 paged expression of interest, which should include the following: 1. A suitability statement, including commitment to availability for the entire assignment. 2. A brief statement of on the proposed study methodology including a detailed work plan. 3. A detailed financial proposal, including daily cost per major activity. 4. Updated curriculum vitae that clearly spell out qualifications and experience for the key Consultant(s). (These can be annexed, and are not part of the statement of expression of Interest in 2 above) 5. Contacts of 3 organizations that have recently (but preferably the last 3 years) contracted the firm/consultant(s) to carry out relevant research/ survey or related work

How to apply:

1. APPLICATION CONTACTS All interested and qualified consultants should send their Expression of Interest application to:

kenyajobs@oxfam.org.uk. Application deadline is Tuesday, 2nd April 2013 by 5.00pm