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Terms of Reference for Procurement of Consultancy Services for the Review of Early Generation Seed (EGS) Business Models, Business Plans and Propositions for Improvements
1. Background and Context
The Department of Agricultural Research Services (DARS) is the main public research institution in Malawi. DARS is, therefore, the main developer and owner of public varieties developed in Malawi.
The main private players in the formal seed sector in Malawi are seed companies and seed growers that are registered by Seed Services Unit (SSU) to produce certified seed of the released varieties and market the same. To feed the growing populations in Malawi and provide the required amount of raw material for food processing industries, the production and productivity of crops grown in different agro-ecologies of the country should be increased. One of the key inputs for increasing production is availability of Early Generation Seed (EGS) i.e. breeder, pre-basic and foundation seed) of major crops. The production and supply of EGS in Malawi can be characterized as evolving and there are multiple sources of EGS. EGS is produced by DARS, private seed companies, and individual seed growers. Other producers include cooperatives, and centers of the Consultative Group on Inter-national Agricultural Research (CGIAR), namely the International Maize and Wheat Improvement Center (CIMMYT), HarvestPlus, the International Crops Research Institute for the Semi-And Tropics (ICRISAT), the International Institute of Tropical Agriculture (ITA), and the International Centre for Tropical Agriculture (CIAT). Therefore, it is important to maintain strong, two-way, and sustained partnerships between seed production entities and public breeding programs to deliver breeding program gains to farmers.
1.1 Problem Statement
In recognition of the challenges facing the seed sector in Malawi, several interventions have been undertaken to increase the production and supply of high-quality seed. Although the interventions have contributed to some remarkable changes in the seed sector, they have been piece meal – and have not resolved systemic challenges in the seed sector. Therefore, through the Seed Systems Assessment Tool (SeedSAT), AGRA conducted a comprehensive assessment of the seed sector in Malawi to understand the status, challenges, gaps, and potential areas for investment in the seed sector. Among the major issues identified by the SeedSAT assessment related to the proposed scope of work, is that despite the establishment of various business models for EGS production in Malawi, such as the Public-Private Partnerships and private investments, the public EGS supply system is still inefficient and poorly organized. With well-designed business models, the public-private collaborators are tipped to maximize on technological, operational and business resources available to them, and in fact give more options for farmers particularly in crop diversity and scaling up seed production as seen in many of the AGRA supported seed companies, that have advanced from grants to securing matching funds, a trajectory toward sustainability. Sustainable seed sector development requires a strong two-way, coordinated and sustained effort and partnership between public and private sectors, where roles may differ across the seed value chains – from variety development, seed production, to seed marketing.
The variety licensing programs at DARS are not properly functional, even though DARS licenses some seed companies, suggesting a poor system through which seed companies can commercialize varieties from DARS through licensing agreements. For example, the SeedSAT assessment conducted in 2021 revealed that; in the last 10 years, 56 maize (30% commercialized), 24 bean (13% commercialized) and 7 groundnut (29% commercialized) varieties have been released by the breeding programs and very few have been commercialized in Malawi.
The low rates of variety commercialization in Malawi have significantly contributed to the low variety turnover and low adoption rates of improved crop varieties. For example, in 2021, the utilization of certified seed varied widely across the different crops that were inspected by Seed Services Unit (SSU), below 10% for rice, cowpea, and sor-ghum against the National Agricultural Policy of 2018 set target of 60% agricultural technology adoption. Even though DARS has licensed some of the varieties to some seed companies, the royalty collection system is not functional, as such, there is no allocation of collected royalties to support public-sector breeding and EGS production programs resulting in DARS facing significant challenges pertaining to the insufficiency of resources (low capacity) to produce, maintain and store EGS. As a result, EGS supply from DARS is highly insufficient for most seed classes to meet certified seed production needs resulting in serious and chronic seed supply gaps Even though this challenge is occasionally addressed through project funding, this practice is not sustainable.
With funding from AGRA through the Malawi Improved Seed Systems for Sustainable Agriculture Project, the Seed Trade Association of Malawi (STAM) and DARS intend to engage the services of a firm or a team of consultants to review business models for Early Generation Seed production, develop Business Plans and provide propositions for improvements.
1.2 Overall Goal, Objective and Expected Outputs of the Assignment
1.2.1 Goal
To strengthen the competitiveness of the seed sector in Malawi by addressing inadequacies/emerging bottlenecks in EGS production business models, variety licensing programs, including business plans.
1.2.2 Main objective
The overall objective of this assignment is to establish a sustainable
EGS production and supply mechanism through functional variety licensing programs, strengthened sustainable EGS production business models, and coordination between DARS and Seed companies.
1.3 Expected consultancy outputs
- Cost-effective EGS business plans developed
- Enhanced seed company access to EGS from DARS
- Improved variety licensing and royalty payment system by seed companies
- Enhanced capacity of DARS to produce EGS
1.4 Targeted Crops
The assignment will prioritize the following crops: maize, rice, groundnuts, soybean and common beans
2.0 Scope of Work and Tasks
The assignment will be conducted in Malawi. The consultant will be expected to provide the following services:
- Conduct scoping studies for functional EGS production business models – Conduct a scoping study to (i) review the performance of the various EGS business models in Malawi including the pros and cons, and (i) identify any inadequacies/emerging bottlenecks and define the specific strategies/approaches to address them.
- Recommend sustainable EGS production business model(s) that are/is scalable in the Malawi context for selected crops (maize, rice, groundnuts, soybean and dry beans) and respond to critical bottlenecks that slow-down and limit the integration of EGS in seed value chains of the selected crops.
- Assist EGS seed producers with strategies for raising investment and running capital for EGS production, including the development of, or the improvement of business plans and forging beneficial partnerships. This will entail (i) designing cost-effective business plans to stimulate supply capacities, diversification, entry conditions (including accreditation) and authorization mechanisms, marketing and distribution in the EGS value chain (eg access to finance, seed market assurance), (i1) Assessing the effectiveness of the current format for variety licensing agreements between Public Breeding Institutions (such as DARS) and seed companies 10 determine: (a) whether seed companies understand and adhere to these variety licensing agreements, or devise new variety licensing models (b) whether Public Breeding Institutions have the human resource capacity required to implement and monitor the agreements, and whether there is a clear framework for the determination and payment of royalty fees to Public Breeding Institutions, and this entails DARS, the umbrella association of seed companies, STAM and seed companies jointly developing an efficient system through which seed companies can access newly released crop varieties from Public Breeding Institutions through licensing agreements and thereafter commercialize. This would also entail a discussion/review and mutual agreement of the terms of these licensing agreements under the legal framework provided under the Plant Breeders Rights (PBR) Act of 2018 by DARS, STAM and seed companies, and drafting of the licensing agreements by legal experts thereafter institutionalization of the revised licensing agreements.
3.0 Deliverables
The following deliverables are envisioned under these ToRs:
- Inception Report: An inception report demonstrating understanding of the assignment and a detailed methodology for carrying out the assignment, which will be presented to the Ministry of Agriculture (MoA) within one week after signing of the contract
A comprehensive plan of action – the consultant shall provide a comprehensive plan of action detailing all the proposed interventions, specific activities as well as the detailed mapping of stakeholders to be engaged, outlining relative roles and responsibilities of the government and key stakeholders, including the private sector.
- Consultative workshop reports
- Present a draft report at a validation workshop organised by the MOA/DARS
- Final report that incorporates feedback from the validation workshop (A comprehensive final report with key milestones targets achieved around (i) assessment of the performance of the various EGS business models in Malawi, including recommended specific and detailed strategies/approaches to address them, including a cost/benefit analysis (lil) the EGS seed producers assisted with strategies for raising investment and running capital for EGS production, including the development or improvement of business plans and forging beneficial partnerships, (iv) the identified bottlenecks/inadequacies affecting variety licensing programs, including the strategies/approaches recommended to address them. The report must be explicit and clearly broken down by tasks under Section 3 (a, b, c, and d), and (v) and lessons learnt.)
4.0 Eligibility Criteria
The assignment shall be carried out by a firm or a team of consultants.
The firm or team of consultants shall be comprised of experts with the following minimum qualifications:
4.1 Seed Systems Expert
- A minimum of Master’s Degree in Seed Systems or agriculture related field
- A minimum of 5 years’ experience in Seed Systems related work and assessments on the African continent
- Previous or current work in seed related activities in developing countries and specifically in Africa
- Experience in working with government agencies, private sector and development partners in sub-Saharan Africa
- Previous experience in providing technical support to seed production SMEs/conducting assessments to the AGRA target countries is an added advantage.
- Strong analytical skills, including the capacity to address clearly and quickly complex seed production models Ability to draft high-quality analytical documents
- Excellent communication and interpersonal skills, including working in teams
- Excellent presentation, facilitation and report-writing skills
4.2 Business Development Expert
- A minimum of Master’s Degree in Business Studies or related field
- A minimum of 5 years’ experience in Business Development related work and assessments on the African continent
- The consultant must possess a sound reputation with demonstrated in-depth knowledge of agriculture policy landscape, and public and private sector-led agricu ture in Africa, particularly Malawi
- Must have capacity to develop seed-related business plans
- Previous or current work in seed related activities in developing countries and specifically in Africa
- Experience in working with government agencies, private sector and development partners in sub-Saharan Africa
- Previous experience in providing technical support to seed production SMEs/conducting assessments to the AGRA target countries is an added advantage.
- Strong analytical skills, including the capacity to address clearly and quickly complex seed production models Ability to draft high-quality analytical documents
- Excellent communication and interpersonal skills, including working in teams
- Excellent presentation, facilitation and report-writing skills
5.0 Duration of the assignment
The assignment will be delivered within a period of 90 effective working days spread over 6 months from the date of contract signing.
6.0 DARS’ Responsibilities
DARS will provide relevant documents to the consultant and facilitate logistical arrangements for the assignment. DARS will also provide overall guidance during the execution of the assignment.
7.0 Reporting
This overall assignment will be managed by the Ministry of Agriculture, but technically and administratively, the consultant will directly work with the Department of Agricultural Research Services (DARS).
8.0 Mode of application
Eligible firms/ teams of consultants should send their technical and financial proposals by the end of business on 25th September 2024 to the following address:
Seed Trade Association of Malawi
P.O. Box 2505
Lilongwe
Malawi
For any enquiries, please contact STAM at staminformation@gmail.com.
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