Terms of Reference for Development of Business Plan for Rongo Fish Farmers

Multipurpose Co-operative Society LTD

1.0 Background
1.1 Kenya Markets Trust
The Kenya Gatsby Trust (KGT) was founded in 1993 as one of four independent country
trusts set-up across Africa by the UK based Gatsby Charitable Foundation to support
enterprise development and wealth creation.

Since 2011 KGT has realigned its organizational mission to focus on transforming the
functioning of markets, and in doing so to make markets work better for the poor. This
shift in KGTs organizational mission was in response to a growing understanding among
development partners around the importance of market systems as a transmission
mechanism for economic growth and poverty reduction. In support of this shift in
organizational focus, the Board of KGT also took the decision to change the name of KGT
to the Kenya Markets Trust (KMT). KMTs new mission is embodied in its new motto:
better markets, better lives.

Together with its institutional partner, Adam Smith International (ASI), KMT is currently
leading a consortium of four partners in implementing a four to six year programme
the Kenya Market Assistance Programme (MAP). MAP aims to improve the performance
of selected market systems in order to boost overall competitiveness whilst
strengthening the performance and position of poor people participating in markets
whether as producers, employees or consumers. Overall, the objective of MAP will be
measured against three key outcomes:
Major systemic change achieved within a portfolio of 4 to 8 market systems,
resulting in the average proportion of the net attributable income change for
farmers and entrepreneurs (disaggregating men and women) increasing by 20%
over the life of the programme,
At least 200,000 poor people (as producers, employees, consumers etc)
positively affected at the end of MAP measured in terms of increasing incomes,
new jobs created and access to new and improved services;
A 30% increase in peer perceptions of partners effectiveness and in
stakeholders awareness and understanding of the approach.

KMT will achieve these outcomes by facilitating the realignment of the incentives,
capacities, relationships and rules which govern how markets work. In doing so, KMT
and its partners will also be looking to catalyze private sector innovation, and support
the emergence of more inclusive business models which deliver a better return to the
poor.


1.2 AQUACULTURE
The aquaculture sector plays a key role in food security, not only for subsistence and
small-scale fishers who rely directly on fishery for food, incomes and services, but also
for consumers who regard it as a source of affordable high-quality animal protein.
Kenyan aquaculture is characterized by low levels of pond production, which has led to
the stagnation of national aquaculture production over the past decade. The sector has
been unable to realize its full potential and scale up systemically due to a number of
constraints which have resulted in low competitiveness. The constraints include;
availability and distribution of quality fingerlings and fish feed, consistent technical
support for farmers and market linkages.

A key focus for MAP in aquaculture is to facilitate establishment of a strong base of
commercial investment in production and marketing of farmed fish. Smallholder
production built upon a commercially managed base is additive and when linked
through commercial aggregation models tends to generate greater returns to
smallholders as well as improve the efficiency of extension messages. MAP is targeting
to facilitate the growth of existing and potential private commercial firms interested in
engaging smallholders in outgrower schemes and other commercially managed models.

In this endeavour, MAP is supporting Rongo Fish Farmers Mulitpurpose Society Ltd
(RFFMS) to develop a business plan that will fortify its business strategic direction and
enhance its outreach and service delivery to its members. RFFMS was formed and
registered with the Ministry of Cooperatives in 2012. Membership to the society is
drawn from Fish farmers within Migori County. The impetus to form the society arose
when the government of Kenya identified the county as one of the beneficiaries of a
mini fish processing plant in 2012. By then the county had over 500 farmers, majority of
whom were supported by the government under the Economic Stimulus Programme
(ESP) to start fish farming. The goal of RFFMS is therefore to provide a common platform
that invigorates the production of quality fish to safeguard food security, allow for
maximum use of production capacity of the mini processing plant and contribute to
economic stability in the County. To realise this goal, RFFMS management committee
has already identified the role it needs to play in short and medium term:
Recruitment, Mobilization and Sensitization of members to increase RFFMS
outreach and membership base;
Spearhead fund raising and resource mobilization efforts including revenue
generation to strengthen the societys financial liquidity;
Linkage between the farmers and private firm managing the mini-processing
plant;
Provision of extension Services, Education and Training;
Coordinate stocking, harvesting, bulking and cold storage transportation;
Establish distribution and collection centers;
Linkage between members and suppliers of quality aquaculture inputs;
Negotiate and Advocate on behalf of members and
Promote self-Regulation amongst members;
The business plan will therefore aid RFFMS to gain a better understanding of
aquaculture sub-sector business environment, realign its role to be more effective and
efficient, develop feasible business operational and financial strategies and have a
framework against which to measure their performance.

2.0 Scope of Work
The main objective of this consultancy is to gather, collate and analyse current and
relevant aquaculture sub-sector information necessary for developing a realistic
business plan for RFFMS. Focus will be on key business drivers RFFMS must leverage on
to realize business growth, success and sustainability without compromising on its social
responsibility to its members. The study will be undertaken in current RFFMS catchment
areas in Western Kenya region and other relevant neighbouring counties and national
sites.

The consultant will be required to:
Develop appropriate data and information gathering tools essential for collecting
relevant information for the business plan;
Review existing relevant materials from RFFMS, State Department of Fisheries
(National & Counties), KMT, etc;
Hold meeting and consultations with RFFMS, partners and key stakeholders to
gain in-depth understanding of aquaculture sub-sector, the market size and
trends, the business environment and the business nexus;
Critically assess RFFMS roles and responsibilities to farmer members, advise on
how these responsibilities can be structured in a way that makes commercial
sense to generate revenue and create value to the members fish farm
enterprises;
Develop a business plan that specifies strategies to be used in resource and
membership mobilisation, advertising, sales and marketing, distribution,
extension and training delivery, pricing and positioning amongst others;
Develop a business plan that includes required resources (staff skills, physical
and intangible assets, raw materials etc), map operating costs structures,
revenue streams, and value propositions;
Identify the extent of and areas in which capacity building and human resource
development of RFFMCS management committee will be required to enhance their
overseer responsibility;

Identify possible partnership networks and target customer relationships in
addition to developing a projection of quantity of aqua-products and services
that can be traded profitably,
Develop a long term financial projection for RFFMCS; this will include; cash flow
projections, balance sheets, income statement, start-up capital needed, return
on investment, profitability margins, payback periods, average net profits, and
risks and proposed risk mitigations. This shall also include concrete evidence
illustrating how the business will be sustainable.

3.0 Required Qualifications:

At least 10 years experience with a strong bias on enterprises development
within rural set ups;
Advanced training, masters level degree or higher in Business development or
related field. A background in commercial, agri-economics, public private
partnerships, social enterprises development or other relevant community
development field of study;
Demonstrated understanding for the agricultural sector SME development will
be an added advantage;
Demonstrated skills on government, community and private sector engagement
Demonstrated writing, analytical, presentation and reporting skills

4.0 Expected Outputs and Reporting

A draft RFFMC 3 year (2014-2016) business plan developed and presented to
KMT and RFFMC for comments and feedback;
A final detailed RFFMC business plan after incorporating comments and
feedback.
KMT Supply Chain Manager or his authorized designate, will direct and co-ordinate the
consultancy.
The Supply Chain Manager and RFFMCS will:
Have overall responsibility and accountability for the consultancy;
Guide and arrange meetings and direct the assessment and write up process to
final completion

The consultant, on the other hand, will be expected to:
Prepare an inception report and a work plan for the duration of the consultancy
thus bringing refinement, specificity and elaboration to the TOR
Perform their consultancy task in a spirit of team work, efficiency and
professionalism
Deliver on the specified output of the assignment
The report shall be written in English and submitted within a reasonable time
frame within the consultancy period. All the documents are to be submitted to
KMT Nairobi office.

4.0 Consultancy timeframe

Total contract period will be 17 days scheduled as follows;

Deliverable Duration Due date
Inception brief preparation and development of data
collection tools
2 days 4
th
Dec. 2013
Field meetings and data collection 10 days 20
th
December 2013
Writing draft Business plan 3 days 10
th
January 2014
Finalising Business plan 2 days 24
th
January 2014

5.0 Logistics
The consultant will prepare an itinerary and arrange all the visits proposed and agreed
by KMT and RFFMCS. KMT will reimburse the logistics for travel and accommodation
costs upon receipt of an invoice from the consultant.