04/07/2023

ENHANCING PRODUCTION AND MARKET ACCESS VEGETABLES TO SUPPORT ECONOMIC DIVERSIFICATION IN MONGOLIA

Project Title	Enhancing Production and market access of vegetables to support economic diversification in Mongolia
Title of assignment	A comprehensive baseline study for the greenhouse project
Location:	Mongolia
Type of Contract	Consultancy firm/team of consultants
Duration of Contract:	45 days

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1. BACKGROUND

Greenhouse vegetable production in Mongolia has been gaining attention as a means to enhance domestic food production and reduce reliance on imports, particularly during the colder months. The sector has been growing steadily, driven by increasing demand for fresh and locally grown vegetables.

 

The Mongolian Government has shown support for greenhouse vegetable production by implementing policies and providing incentives to promote agricultural development, including greenhouse farming. But the harsh and extreme climate conditions in Mongolia pose challenges for greenhouse vegetable production. The availability and accessibility of resources such as land, water, electricity and inputs vary across different regions of Mongolia. Producers face challenges related to infrastructure development, access to markets, and logistical issues. Also, they face competition from imported vegetables, especially during the winter months when local production is limited.

 

The USAID funded, FAO implemented “Enhancing Production and market access of vegetables to support economic diversification in Mongolia” project is designed to enhance food security, dietary diversity and decent job opportunities through increasing greenhouse-based vegetable production and market access. The project aims to (i) boost supply of local fresh vegetables and vegetable products boosted through promoting greenhouse-based vegetable production, (ii) expand market access for vegetable growers by involving private investors and improving value chain management, and (ii) share/disseminate experiences and lessons that improve commercial viability and profitability of vegetable production in Mongolia;

 

The project will also build a mid-sized, energy efficient, long duration greenhouse in partnership with interested private investor in selected Aimag in order to showcase sustainable greenhouse technology and range of cultivation methods. To support the interventions, including identifying the location of the Greenhouse, FAO is inviting expression of interest from potential research organizations, think tanks, consultancy companies or individual team of consultants.

1. Objectives of the assignment

The purpose of the baseline study is to gather comprehensive data and insights regarding suitable locations for greenhouse establishment, production practices, productivity, quality, pricing, sales, consumption, market conditions, and policy constraints. The findings from this study will serve as a foundation for informed decision-making, strategic planning, and policy formulation related to greenhouse vegetable production. The main objectives of the baseline study are as follows:

• Identify the most suitable locations for greenhouse construction, considering factors such as climate, soil conditions, market access, infrastructure and so on;
• Assess current production practices, techniques, and technologies employed in greenhouse vegetable production;
• Evaluate the productivity levels, yield potential, and quality of greenhouse -grown vegetables;
• Analyze pricing dynamics, market trends, and consumer preferences for greenhouse vegetables;
• Examine sales channels, distribution networks, and consumption patterns of greenhouse vegetables;
• Assess the risk profile associated with greenhouse-based vegetable production, including climate risks, pest and disease management and market volatility;
• Evaluate existing market conditions and identity any policy constraints or regulatory barriers that may affect greenhouse vegetable production;

 

Some research questions to be analyzed in the baseline study.

 

Given the current market conditions, is investing in greenhouse vegetable production commercially viable proposition? This will include sub-question such as

 

• What is the size of the current market (Ulaanbaatar and various Aimag/regional centres) and how is it expected to grow?
• What is the approximate cost of production of key selected vegetables at greenhouses in Mongolia in different locations and the landed price at retail points (accounting for other costs in the value chains including loss of vegetables in the chain)?
• Which geographic locations have the best opportunities for a private sector investment to build up a successful value chain?
• Which are the most profitable vegetables for greenhouses?
• Who are the key competitors and how competitive can vegetable production in Mongolia be to compete with imported vegetables?
• What are the possible ways and means to enhance profitability?
• What are the most suitable production models and technologies (automated large-scale greenhouses, medium size energy efficient greenhouses, smaller scale solar powered greenhouses etc) for Mongolian agro-ecological and market conditions?
• Are the current market conditions (including financial markets) favorable for commercial banks to invest at scale in greenhouse vegetable production in Mongolia? If not, what are the barriers and what may be done to enhance the viability of commercial finance in the sector? Appropriate duration for commercial bank lending for greenhouse growers? Possible lowest interest rate?
• What is the risk profile faced for commercial financing and how can this risk be shared between banks, investors, credible credit guarantors and the government?

1. Methodology

 

The baseline survey will use both qualitative and quantitative data collection techniques to source for appropriate information from the respondents, including:

• Rapid desk review of existing reports, studies and relevant publications;
• Surveys, interviews, and focus group discussions with key stakeholders, including greenhouse vegetable producers, consumers, distributors, and government officials;
• Field visits and data collection from representative greenhouse production sites;
• Data analysis and modeling to assess productivity, pricing, market trends, and risk profiles;

 

Anyway, the bidders should indicate their proposed methodology including aspects of sampling, sample size, tools, design and administration. Darkhan-Uul, Selenge, Khovd, Tuv, and Ulaanbaatar will be target areas for this baseline.

1. deliverables

 

The baseline study will produce the following deliverables:

1. Comprehensive report presenting the findings and analysis of each area of assessment, including location suitability, production practices, productivity, quality, pricing, sales, consumption, risk profile, market conditions, and policy constraints;
2. Recommendations and strategies for enhancing greenhouse vegetable production, addressing challenges, and leveraging opportunities identified during the study;
3. Dataset containing relevant data, surveys, and interview transcripts for further analysis and reference.

 

1. timeline

 

The consultancy firm/team of consultants will work a maximum of 45 working days, upon signing of the contract. The tentative schedule is as follows:

 

 

Activities	Consultancy days	Deadline	Weeks
			1	2	3	4	5	6	7	8
Baseline planning and design	10		x
Submission of inception report	10			x
Sampling and field work	13				x	x	x
Data processing and analysis	7							x
Submission of draft report	2								x
Validation meeting	1								x
Final report	2									x

 

1. Institutional arrangements

The contractor shall work closely with the the FAO, relevant Government departments, local government, private sector and farmers.

1. Qualifications of the successful contractor

As the consultancy is multifaceted, the consultancy firm/ team of consultants is expected to have a mix of skills relevant to the assignment. The required background and experience for the consultancy team is as follows:

• Conducting comprehensive baseline studies in the agriculture, crop, development, and economic field.
• Rapid assessment process and methodology.
• Experience working and gathering data in the provinces of Mongolia;
• building strong relationships with government and external actors;
• understanding client needs, formulate clear strategic plans, priorities interventions and proposed allocation of resources according to priorities;
• developing innovative solutions to address challenging situations;
• establishing effective working relations in a multicultural team environment;
• Excellent oral and written communication skills.

 

A.    Qualifications of individual team members:

• At least advanced university degree (master’s degree or equivalent) in agriculture/crop science, social science, economics, businesses, and development studies.
• A combination of relevant academic background (Bachelor’s degree or equivalent) and extensive relevant professional experience in a related area may be accepted in lieu of advanced university degree;
• Excellent knowledge and skills on design and implementation of baseline study methodologies;
• Experience in development and implementation of agriculture and crop sector development programmes;
• Experience conducting research, including enterprise surveys, on private sector and government policy;
• Data/statistical analysis
• Demonstrated negotiation skills and experience engaging with strategic partners (UN Agencies, IFI’s, government institutions, bilateral and multilateral donors, private sector, civil society);
• Fluency in written and spoken English is essential;
• Ability to write high quality reports, make impactful presentations, design and deliver audience-focused presentations, etc.

1. Scope of Bid Price

Research entities must send a research and financial proposal based on lump sum amount. The total amount quoted shall be all-inclusive and include all costs components required to perform the deliverables identified in the TOR, including professional fee, travel costs, and any other applicable cost to be incurred by evaluation team in completing the assignment. The contract price will be fixed output-based price regardless of extension of the herein specified duration.

1. Payment

Payment plan shall be based on deliverables outlined upon successful and satisfactory completion of activities.

 

Therefore, the payment terms shall be as follows

• Payment upon submission and acceptance of Inception report – 20%
• Payment upon submission and acceptance of Draft Baseline Report – 50%
• Payment upon submission and acceptance of Final Baseline Report -30%

1. submission of proposals

Interested Consultancy firm/team of consultants are requested to submit:

1. A technical proposal detailing their interpretation of the TOR, proposed methodology including sampling framework, work schedule and proposed budget;

2. A capability statement demonstrating how they meet the required qualifications and competencies;

3. Copies of all relevant Curriculum Vitae (CVs). Only CVs for the specific individuals that will form the proposed survey team should be included;

Incomplete proposals may not be considered. Only the successful candidate will be notified of contract award.

1. Criteria for Selection of the Best Offer

Combined Scoring method will be used in the selection of a consultant, where the technical proposal (expertise, methodology, experience, and qualification of key personal) will be weighted a max. of 70% and combined with the price offer which will be weighted a max of 30%.

The technical qualification scores are as follows:

Technical criteria 1: Expertise of the organization – 20 points

Technical criteria 2: Qualifications of team members – 50 points

Technical criteria 3: Proposed methodology – 30 points