Consultant for Cost Effectiveness Study between Green Soyabean, Baby Corn and Rice and/or other Agriculture Products in An Giang and Dong Thap Provinces

I. INTRODUCTION
Antesco is one of Vietnam’s leading companies that specializes in producing and exporting the frozen IQF and canned tropical vegetables and fruits such as: Baby com, pineapple, green soybean, okra, strawmushroom, chillies, taro, mango, papaya, dragon fruit, mangosteen, jack, fruit, etc… Each year, the supply of baby corn and green bean meets half of the requirement.
The company’s vision is to maintain the leading role in export of processed fruits and vegetables through strengthening and improvement of linkages among producers, collectors, processor and buyers.
In order to stimulate the local farmers to expand the area and improve the productivity of green soya bean and baby corn it is necessary to understand why farmers would opt for growing green soya bean and baby corn or an alternative crop/ product. A study focusing on the cost effectiveness between green soya been, baby corn and rice or other crop cultivation will contribute to this understanding. Further, the identification and designing of business model for improvement of the Antesco’s supply chain of green soya bean and baby corn to be conducted if these kinds of crops proved to be most economical.
SNV and Antesco have agreed to carry out this study and initial design of the business model in 2011. As the next step, Antesco and SNV will join efforts on resource mobilization to finance for piloting and up-scaling of the business model.
 
II. RESEARCH OBJECTIVES
1 General objective
To determine factors that facilitate local people in the study area would opt for growing green soya bean and baby corn or an alternative crop/ product and impacts of this cultivation practice on the environment and the society, and evaluate the economic value of green soya bean and baby corn versus rice cultivation and/or other crop products in order to verify if green soya bean and baby corn cultivation are a promising alternative for rice cultivation and/or other agri-products or not.

2 Specific objectives
The specific objectives of the study include:
- To assess the current status and socio-economic impact of green soyabean and baby corn cultivation versus rice cultivation and other agricultural products in the planned area for green soya bean and baby corn in Cho Moi, Tri Ton, Chau Phu districts, An Giang province and Lap Vo district, Dong Thap province.
- To compare the costs and benefits of rice and other agricultural products cultivation, which has been applied and green soya bean and baby corn cultivation to farmers at the research site in order to check whether rice and other agricultural products cultivation are actually more profitable and more attractive for  farmers or not.
- To determine factors influencing farmers’ choice for green soyabean and baby corn cultivation with special focus on the adoption of rice cultivation and/or other agricultural products.
- To assess the market requirements and the current support policies of line departments, and any other programme from NGOs, etc. toward green soya bean and baby corn cultivation in An Giang and Dong Thap provinces.
- To suggest optimal green soya bean and baby corn production and/or optimal revolving of green soya bean and baby corn with different agricultural crops
- To suggest the cost-effective cultivation model, including cultivation practice, types of seeds, types of inputs, postharvest techniques etc. for Antesco to stimulate farmers to specialize in green soya bean and baby corn cultivation and increase their productivity.
- To initially design the inclusive business supply chain model of green soya bean, baby corn and/or alternative economically effective agricultural products with the Antesco company

III. RESEARCH CONTENTS
1. Assess the current status and socio-economic impact of green soya bean and baby corn plantation versus rice cultivation and/or other agricultural crops in the planned area for green soya bean and baby corn in in Cho Moi, Tri Ton, Chau Phu districts, An Giang province and Lap Vo district, Dong Thap province.

- Role of green soya bean and baby corn products with local household income, especially for the poor one
- Area, yield for green soya bean, baby corn, rice cultivation and other crops each year
- Technical, investment and environmental requirements for green soya bean, baby corn, rice cultivation and other crops
- Possibility and reality of local farmers
- Strengths, opportunities, weaknesses and threats for green soya bean, baby corn, rice cultivation and other crops
2. Compare the costs and benefits of the green soya bean, baby corn, rice cultivation and/or other crops cultivation
Investment cost
Laboring
Revenue
Net profit
3. Determine factors influencing farmers’ choice adoption of rice and/or other crops cultivation versus traditional green soya bean and baby corn cultivation
Natural aspects
Economical aspects
Physical aspects (irrigation system,...)
Social aspects
4. Assessment of current policies at national, provincial and district levels that have a direct influence on growing:
Green soya bean
Baby corn
Rice
Other agricultural crops
5. Assess the current provision of extension services to green soya bean and baby corn
Types of extension provided to farmers
Quality…..
6. Identify market requirement for green soya bean and baby corn
Quantity and quality requirements from Antesco and its buyers
7. Initial design of business model for Antesco’s supply chain of green soya bean, baby corn and/or alternative economically effective agricultural products with the Antesco company
Type of crops/products
Major actors in the supply chain
Production, supply and management model
Required technical assistant provided by Antesco and SNV
8. Validation workshop with relevant stakeholders
Farmers (representative for each group)
Scientists
Policy makers (at different level)
Traders (at different scale)
Donor
9. Research report, including proposed business model with Antesco company
 
IV. RESEARCH METHODOLOGY
1. Data collection
Both primary and secondary data will be used.
a. Primary data
Key informant interview:
Representatives of Antesco and other buying enterprises in the location
Representatives of local authorities at communal and district levels
Representatives of agricultural extension center, DARD and PPC..
Representatives from research institutes in the field of agriculture and aquaculture
Focus group discussion: Representative of farmers in each group at selected commune will be invited into group for discussion.
Green soyabean cultivation group
Baby corn cultivation group
Rice cultivation group
Other crop production groups
Household survey using survey questionnaire: up to 50 households in selected areas (including planned and unplanned areas) will be selected randomly for direct interview.
Transect walk: picture and soil profiles will be taken
b. Secondary data
The secondary data from statistical year books and local administrative system on natural, socio-economic and environmental conditions, land use distribution, current policies support toward green soya bean and baby corn applied; and socio-economic aspects of households in the study site.
2. Data analysis
Both qualitative and quantitative methods will be used for the analysis in this research.
Quantitative analysis
Cost-benefit analysis will be used for analyzing green soyabean and baby corn cultivation versus rice and other crop cultivation:
The net present value (NPV) determines the present value of net benefits by discounting the streams of benefits and costs back to the beginning of the base year.
The internal rate of return (IRR): define as the rate of return on an investment which will equate the present value of benefits and costs. A project will be financially attractive if the IRR is greater than the opportunity cost of project finance.
The benefit-cost ratio (B/C) compares the discounted benefits to discounted costs.
The pay back period measures the number of years it will take for the undiscounted net benefits to repay the investment. An investment can be acceptable only if its benefits can offset all investment costs within a limited arbitrary period.
return to labour: Compare the two land use systems. It is calculated as the ratio of discounted net benefits, excluding family labours from the costs, to discounted workdays spent.
In sensitivity analysis: The results of economic analysis are checked by considering the effects of changes in the value of key variables. Each project always faces risks and uncertainty. The collapse of the variation of benefit and cost items into a single NPV does not provide a thorough view of the problem. Sensitivity analysis then, is employed to estimate the "switching value" of important variables needed for reducing NPV to zero
Qualitative analysis
The qualitative analysis is also will be applied to assess the intangible environmental and social benefits and costs of the land use options that have not yet be quantifiable.
 
V.TIMING

The study should be conducted within December 2011

VI. DELIVERABLE

The study report which comprises of detailed cost effective analysis of production of green soya been, baby corn versus rice and/or other agricultural products, recommendation of most efficient crop production structure and business model for inclusion of local farmers into the supply chain of Antesco company for the win-win solutions for both the farmers and the company. 

VII. QUALIFICATION OF CONSULTANT/LCB

Education - University or master degree in the field of agriculture, and/or agricultural economics especially on green soya bean and baby corn or other agricultural products in the Mekong delta region
Knowledge/Skills – Strong background in rural development and its innovative approaches. Intensive knowledge of the green soya bean and baby corn production in the Mekong delta region of Vietnam, extensive knowledge on agricultural cost-effective analysis and value chain analysis.
Good analytical skills, technical document compilation and software processing. Proven skills in development of inclusive supply chain business model.
Experience – At least 5 years of experience of working in Mekong delta regions of Vietnam, and experience in providing consultancy and technical advice in the field of agricultural crop production and value chain development. Having a network and contacts with national or international public and private sector agencies. Experience in organizing validation workshop and come up with recommendation and designing of business model
Languages – Fluency in Vietnamese and English both verbal and written.

VIII. SUBMITION OF PROPOSAL

Interested consultants are invited to send their proposal for the execution of this consultancy assignment. The proposal should contain a clear description of the objectives, methodology, structure of the study team, detailed activity plan, expected results of the assignment and a detailed break-down of the budget per activity. The proposal should include CV(s) of the consultant(s) proposed to conduct the assignment and an overview of comparable programs done in the past have to be added.
All rights are with SNV to engage or disengage with the proposal. The consultant(s) can be asked for modifications in the proposal whenever need might arise. Remuneration will be subject to the qualification of the consultant and to agreement on services provided by the consultant in relation to the SNV financial regulation. After reaching an agreement on the proposal, including budget, SNV will present a contract to be signed with the consultant.
SNV is highly interested to engage with a consultant that has shared interests in knowledge development, knowledge brokering and networking in relation to value chain and inclusive business development.
The deadline for submitting the proposals is November 30th, 2011 and it must be addressed to Mr Nguyen Hung Cuong – SNV Value Chain Development Advisor at [email protected]