Farmer to Farmer East Africa s8

Farmer to Farmer East Africa

Volunteer Assignment Scope of Work

NOTE: THIS SCOPE OF WORK IS AWAITING FINAL EDITS

A.  Background

Nyeri Hill Farm, owned and managed by the Catholic Diocese of Nyeri is located 165 kilometers north of Nairobi. It dates back to 1904, when the Consolata Fathers established a coffee demonstration farm near the Consolata Mission Hospital in Mathari Nyeri. The missionaries later installed a wet-mill, a huller and a dry-mill to process the coffee produced which was then shipped to Turin, Italy.

The farm sits on 3,000 acres of land, out of which coffee occupies 825 acres making it one of the oldest and largest coffee plantations in Kenya. Other agricultural enterprises that are undertaken within the farm include dairy, tea and horticulture. The remaining portion of the land is home to 23 institutions including schools and colleges, a hospital and seminaries.

The proceeds from the farm sales has over the last century been used to support the Catholic Church social development, pastoral and humanitarian work within the diocese, the country and Africa.

The farm lies at an altitude of 1800-2000 meters above the sea level and receives 750 – 950 mm of rainfall per annum, with an average annual temperature oscillating between 10-30° Celsius, the soils are well drained deep volcanic loam giving the farm the perfect conditions for quality coffee production. The main varieties grown are SL 28, SL 34, K7, Ruiru 11 and Batian.

The farm annual production is around 400 MT of parchment coffee which is classified as FAQ+ (Above Fair Average Quality), with intense flavor, mild acidity and a solid body akin to the famous Colombian mild’s.

There are two harvesting seasons: fly crop harvested between late May to July and the main harvesting season in October to December. The farm also has multiple certifications against global standards; Starbucks C.A.F.E practices, SAN’s Rainforest alliance and UTZ certified and is also a member of the 4C association.

The farm recently acquired a marketing agency license from the Coffee Board of Kenya to market its coffee and also from other producers whom they may enter into marketing agreements with.

B.  Issue Description

After more than a century of existence as a coffee producer, the farm desires to remodel its business through vertically integration along the supply chain and collaborate with other actors in the coffee value chain to increase by adopting an integrated agro-enterprise design that is scalable and sustainable in the long run.

The farm intends to do this by:

1.  Installing an irrigation system in the coffee plantation. This will enable it to increase its production from the current 400MT to 600MT of parchment coffee per annum.

2.  Putting an additional 100 acres under coffee to increase production of cherry.

3.  Modernizing its coffee processing factory (Wet milling process) to minimize wastage, handle increased production and preserve/maintain the high quality.

4.  Coffee milling and packaging for local and international market- Currently, the farm has a miniature dry mill, small roaster and a grinder and is doing small scale packaging and marketing on a pilot basis

5.  Direct marketing/ export of its coffee and coffee from neighboring smallholder farms. The farm has secured a marketing license.

6.  Strengthening its capacity to forge linkages and alliances with single origin/specialty/micro lot buyers/roasters who pay a premium for traceable coffee.

7.  Linking with tour operator(s) to provide eco/farming tour stop

8.  Milling and marketing coffee for neighboring communities to protect them from cartels and enable them get a good return for their investment

9.  Attracting an equity and or impact investor to boost the working capital and cash flows of the farm to carry out the modernization and re-alignment of its business.

It is with this growth plan in mind that the farm is seeking expertise to support it remodel its business.

The implementation of this growth plan has been hampered by:

a)  Lack of clear business plan to guide its decision making and operations

b)  Lack of a financial plan to inform its decision making

c)  Lack of a marketing plan and a concise route to market

d)  Limited understanding and exposure to the coffee export markets

e)  Limited access to finance (Financing options) to facilitate the required capital investments

f)  Lack of a market and consumer survey to identify the consumer needs and market segments, the farm has been selling ground coffee (which is usually for the MoP and ToP markets) against a potential of soluble coffee that is suitable for the BoP market where penetration and demand exists.

This expert will help the farm management to reflect on their past and their present, interrogate the viability of the proposed growth plan, clearly visualize how the future will look like and clearly stipulate the steps they need to take to get there.

C.  Objectives of the Assignment

The objectives of this assignment is to:

1.  To carry out a business model canvas of the farms business to assist the management fully understand where their business stands, the potential and what the future holds in terms of productivity, revenue streams, customer segment among others.

2.  To analyze the farms proposed growth plan and come up with a model/ business plan that fits the farm’s objective of becoming a marketing agent, roaster and market outlet for the farms coffee and that of small scale farmers in the neighbourhood

3.  To come up with a financial plan that projects the financial future of the farm including the costs of investment, break even analysis and path to prosperity as well as explore possible capital sources

4.  To support the farm management to appreciate some of the relevant good business practices that the farm may need to embrace to be able to excel going forward.

5.  Come up with an action plan and work packages for the realization of the Farm’s transition.

Additionally, the volunteer expert will be expected to identify gaps for future F2F volunteer training

D.  Host contribution

Hill Farm will select staff and members of the management board and investment team to participate in the sessions. The farm will also organize and make available all the necessary data/information from their records. Additionally, the farm will provide transport for the volunteer to and from the hotel, make arrangements for a meeting venue and provide meals and refreshments to the participants. The Farm will also arrange for training aides such as projector and stationery. The host will further provide the volunteer with office space and office furniture from where to operate. The host will also organize and facilitate a tour of the farm.

E.  Anticipated Results from the Assignment

It is anticipated that CRS F2F volunteer assistance in Business Model Canvas as well as the business and financial plans development will help propel Hill Farm in to its next phase of growth.

The anticipated deliverables include:

§  A detailed Business Model Canvas

§  An updated/ new business model informed by the planned growth path

§  A business plan

§  A financial Plan

§  End of assignment PowerPoint Presentation to Hill Farm Management Board and key stakeholders

§  Debriefing with USAID and CRS after the assignment

§  Field trip report

§  Outreach activity or a press release and a media event back in US

F.  Schedule of Volunteer Activities in Kenya

Day

Activity

G.  Desirable Volunteer Skills

The volunteer must have the following qualifications and competencies:

§  Post graduate qualifications in business or a related field.

§  Good understanding and practical experience in the use of Business Model Canvas tool

§  Practical experience in developing long range business plans and financial plans for agricultural enterprises

§  Proficient computer skills including MS Word, MS Excel and PowerPoint.

§  Excellent- hands-on workshop facilitation skills to adult audience is necessary

§  Good writing and analytical skill as well as good communication skills

H.  Accommodation and Other In-Country Logistics

While in Nairobi, the volunteer will stay at The Zehneria Portico 10 Karuna Road, Westlands | P.O. Box 66249-0800 | Nairobi |Website: www. zehneriahotel.com; Telephone: +254 731617469/264 | Mobile: +254 733988813 | Email: or any other hotel identified by CRS and communicated to the volunteer prior to arrival. While in Nyeri, the volunteer will stay at the White Rhino Hotel. http://whiterhinohotel.com/

CRS will pay for hotel accommodation, and provide volunteer with per diems to cater for meals and other incidentals. The volunteer may get an advance which has to be cleared before departing Kenya. For more information, please refer to country information that will be provided.

I.  Recommended Assignment Preparations

§  CRS-F2F designs assignments with the assumption of some pre-departure preparation by the volunteer. Actual preparation time will vary based on the experience of the volunteer, as well as informational or training resources the volunteer has readily available. CRS relies on the volunteer to assess the tasks outlined in this SOW and to make his or her own judgment about how much and what kind of preparation is needed prior to arriving in Kenya.

§  The volunteer should prepare materials for hand out which can be printed at CRS office in Nairobi before commencement of the assignment. Flip charts, markers, masking tapes can be obtained at CRS offices. Depending on the training venue the volunteer may use a laptop and projector for power point presentations. But if the training venue is in the community, it will be difficult to use PowerPoint.

§  CRS strongly recommends that the volunteer become familiar with CRS programs in Kenya and other information in the briefing pack before arrival to Kenya

J.  Key Contacts

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