Baseline Study on Newly Fairtrade Certified Cocoa Producer Organizations in Côte d Ivoire and Ghana. Terms of Reference - May 2013

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1 Baseline Study on Newly Fairtrade Certified Cocoa Producer Organizations in Côte d Ivoire and Ghana Terms of Reference - May 2013 Fairtrade Africa and Fairtrade International are currently seeking a research team to undertake baseline research with Fairtrade cocoa producer communities in Côte d Ivoire and Ghana. This research will form the first phase of a multi-year project to understand the impacts of Fairtrade certification for cocoa farmers in West Africa. 1. About the Commissioning Organizations Fairtrade connects consumers and producers to reduce poverty through trade. It is an established route through which farmers and workers in developing countries are empowered to access markets, secure more value for their produce and build more sustainable livelihoods with less environmental impact. Fairtrade International (FLO) is a set of 25 organizations working to secure a better deal for producers. Based in Bonn, Germany, they set international Fairtrade standards and organize support for Fairtrade producers around the world, develop global Fairtrade strategy, and promote trade justice internationally. Fairtrade Africa (FTA) is a member of Fairtrade International and is the independent non-profit producer network representing all Fairtrade certified producers in Africa. Fairtrade Africa is owned by its members, who are African producer organizations, certified against international Fairtrade standards. The Fairtrade Africa remit is to: 1. Represent producers within the global Fairtrade system 2. Ensure producers are co-owners of the Fairtrade system and can influence decisions that will impact their lives. 3. Build producers capacity through training, partnerships and knowledge exchange. 4. Promote intra-african trade opportunities to create extra market access and offer African consumers the opportunity to shop sustainably 5. Raise awareness on trade justice by drawing attention to the concerns and challenges producers face. 2. Context and background Global Fairtrade Cocoa sales have increased from 14,000 MT in 2009 to 55,000MT in Approximately 70% of this is sourced from West Africa of which Côte d Ivoire and Ghana are the origins with the largest production capacity (48,200MT and 40,000MT respectively.) 1 This increase in sales comes from sourcing plans for Fairtrade cocoa from major chocolate brands. This demand is set to increase as other major chocolate brands sign up to Fairtrade as part of their new sustainable sourcing commitments Monitoring the Scope and Benefits of Fairtrade Fourth Edition. Fairtrade International. 1

2 However, despite the growth in demand for Fairtrade chocolate, there are a number of long-term challenges facing the sustainability of the cocoa sector in West Africa that could prevent it from effectively responding to this demand. Productivity in the sector is low (the result of declining yields and declining quality, linked with ageing cocoa plantations and lack of investment in new trees and varieties, and in soil fertility). The cocoa sector in West Africa is also affected by high levels of poverty, poor rural infrastructure, low education and training of farmers, a high prevalence of child labour, an ageing farming population and lack of youth interest in cocoa farming. To be an effective tool for development and improvement for small-scale cocoa farmers in the region, certification programmes need to contribute to improvements in relation to these challenges. The Fairtrade system regularly commissions new research aimed at understanding more about the impacts of Fairtrade for the farmers and workers who are members of Fairtrade certified producer organizations. This research supports Fairtrade in understanding and demonstrating where our system is working well, and where we need to learn and improve. In addition, cocoa stakeholders such as manufacturers, traders, origin governments, and donors are also seeking better data to help them understand the impacts of the investments made in certification. This project is part of a longer term process of impact assessment that should meet some of the data needs of key stakeholders working with certified cocoa producers. The context of West African cocoa makes it a viable location for a longitudinal study in the cocoa sector, with opportunities for organizational learning as well as accountability to major manufacturers and trader involved in the Fairtrade certification system. As the largest producers of Fairtrade cocoa in West Africa, Côte d Ivoire and Ghana are the obvious choices for this study. Furthermore with a rapid increase in the number of certified cocoa producer organizations in Côte d Ivoire in line with potential increased demand for certified product, Fairtrade in the country is at a key turning point making this an optimal time to undertake baseline research. This document outlines the background to the study, the aims and objectives, methodology and intended outputs of the baseline study. Existing Research on Fairtrade Cocoa in West Africa In 2012 external research in the form of a cost/benefit analysis of cocoa in West Africa was completed by KPMG and GBCC for the ICCO 2. A further study was completed by COSA which looked at several sustainability standards, including Fairtrade and cocoa in West Africa. Rainforest Alliance has also commissioned research on cocoa producer organizations in Côte d Ivoire. 3 As many of the producer organizations in Côte d Ivoire hold multiple certifications, this research is likely to have included several Fairtrade producer organizations. 2 KPMG (2012) Cocoa Certification. Study on the costs, advantages and disadvantages of cocoa certification commissioned by the International Cocoa Organization (ICCO). 3 IIED (2012) certified cocoa: Scaling up farmer participation in West Africa. 2

3 The Fairtrade movement has commissioned case study research on some the more established cocoa producing organizations in West Africa for example, CEval However, there is a need for more indepth and longitudinal research with a wider range of groups producing Fairtrade cocoa in West Africa. Objectives of research The primary objective is to provide baseline data for a sample of newly certified cocoa producer organizations in Côte d Ivoire and Ghana. This will provide a benchmark by which to monitor progress and evaluate the impacts of Fairtrade certification for those producers. It is envisaged that this research will form the first phase of a longitudinal study, with follow-up research intended to be undertaken in 2-3 years time. Historically, a lack of baseline data has been a key challenge for Fairtrade in being able to assess its impacts with producers. Most of the impacts research carried out on Fairtrade has relied on less robust recall methods to establish causal linkages between Fairtrade certification and changes that take place at the organizational, farm and household level within certified organizations. The current influx of cocoaproducing organizations joining the Fairtrade system in Côte d Ivoire and Ghana provides a meaningful opportunity to undertake baseline research with Fairtrade cocoa producers in West Africa. The second objective of the baseline study is to provide a comprehensive contextual analysis of the newly certified Fairtrade cocoa producer organizations in Côte d Ivoire and Ghana and provide concrete learning and recommendations for addressing the current challenges and opportunities for the sector, bearing in mind the particular tools and strategies that the Fairtrade system has at its disposal. Baseline study methodology The conceptual framework will be based around the Fairtrade Theory of change, vision and core goals. The type of data collected will also be informed by the Fairtrade and Fairtrade Africa cocoa strategy. Fairtrade Vision and Goals The Fairtrade vision is a world in which small producers and workers can enjoy secure and sustainable livelihoods fulfill their potential and decide on their future. There are three core goals to achieving this vision: 1. Make Trade Fair: Fairtrade aims to create an environment in which small producers are able to develop sound, resilient businesses, workers are able to exercise their rights and freedoms and earn a living wage, consumers are informed and demand fair trading practices as the norm, and policies (public sector and private sector) support and enable sustainability in trade. Key objectives for making trade fair include: offsetting market volatility and risk and a lack of transparency in supply chains; fostering investments in agriculture and rural communities; and ensuring respect for labour rights, environmental sustainability and good governance in trade. 2. Empower small producers and workers: Fairtrade understands empowerment as the expansion of assets and capabilities of people to participate in, negotiate with, influence, control 4 CEval (2012) Assessing the impact of Fairtrade on Poverty Reduction through Rural Development. 3

4 and hold accountable the institutions that affect their lives 5. Fairtrade aims to support processes of empowerment among small producers and workers by helping them build up their grass-root organisations, improve their negotiation position with buyers/employers, achieve economic stability, build collective assets and achieve economic and political empowerment. 3. Foster sustainable livelihoods: A livelihood comprises the capabilities, assets and activities required for a means of living. It is sustainable when it can cope with and recover from stresses and shocks and maintain or enhance its capabilities and assets, while not undermining the natural resource base. 6 Fairtrade aims to foster sustainable livelihoods among small producers and workers by enabling improvements in income, decent working conditions, improved living conditions and sustainable ecosystems. Figure 1. Fairtrade vision and goals. 5 World Bank (2002). Empowerment and Poverty Reduction: A Sourcebook. PREM, World Bank: Washington, D.C. p.11. See: 6 Scoones, I. (2009). Livelihoods perspectives and rural development. Journal of Peasant Studies, Vol. 36 (1):

5 The Fairtrade tools and avenues of impact There are various potential channels through which Fairtrade impacts for producers may develop. The study should consider the extent to which each of these strategies or avenues of impact are likely to be relevant and sufficient to support development for Fairtrade cocoa producers in Côte d Ivoire and Ghana, particularly given the overall strategic aims listed above. In addition to the setting and verification of a set of standards which establish the rules for fair trading practices and for engagement in Fairtrade, the system also has a set of strategies and policies which enable engagement in Fairtrade by a number of stakeholders. These include small producers, workers, employers, supply chain businesses, consumers and civil society organisations. The strategies leverage this engagement to bring about wider structural changes in support of greater equity and sustainability in trade. These include strategies to build Fairtrade markets, to support small producers and workers to build strong organisations and to achieve compliance with Fairtrade standards, to develop networks and alliances between Fairtrade actors with common aims, and to facilitate civil society action around trade justice. It also includes policies to establish good governance and inclusive representation with the Fairtrade system, and to ensure growth with integrity. The research project should explore the extent to which each of these strategies is in place, and how well they are functioning from the perspective of the participating producer organizations and their members. The project should generate recommendations for how the Fairtrade tools and strategies could be better adapted or improved in the context of cocoa producers in West Africa. Figure 2. Standards and Strategies within the Fairtrade system 7 Fairtrade Cocoa Strategy for West Africa The focus of the Fairtrade Cocoa Strategy for 2011 to 2015 is to: (1) Support Small Producer Organizations in becoming sustainable businesses delivering results to members and their communities 7 Sourced from the Fairtrade Theory of Change discussion paper (internal.) 5

6 (2) Drive fairer terms of trade, ensuring producers achieve mutually-beneficial long-term relationships with their buyers The key interventions under the Fairtrade cocoa strategy to overcome specific West Africa cocoa related challenges are as follows: 1. Work towards greater transparency with brands and traders, pursuing longer-term commitments for Small Producer Organizations. 2. To seek greater collaboration with other standard setting bodies and influence standard setting initiatives 3. To provide technical training and support to improve the productivity and quality of cocoa products 4. To support producer organizations to increase the wellbeing of children and youth in cocoa communities 5. To collect data on impact and communicate it effectively to encourage greater market demand Study Scope The study will work with up to 6 small producer organizations identified from a sample of newly Fairtrade certified organizations from both Ghana and Côte d Ivoire. Alongside this the commissioning organizations will anticipate that a counterfactual element is also included for each country. The study will need to address a set of key themes in line with the Fairtrade strategies and avenues of impact as listed above as well as the strategies listed within the Fairtrade cocoa plan. In particular the study should focus on the following areas: 1. The effectiveness of Fairtrade tools and strategies in increasing organizational capacity, inclusivity of organizations and effectiveness in delivering results to members and their communities 2. The impact of Fairtrade business commitment strategies on product price, market understanding, transparency of contractual negotiations and relationships with traders and brands in Fairtrade supply chains 3. The rationale for producer organizations to be multi-certified and its implications 4. Productivity, quality and sustainability issues of cocoa production for farmers and cooperatives sampled in the study and the role and impact of Fairtrade and other certification systems, NGO, INGO and government strategies in place to address these. 5. The level of income, types of livelihood assets, wellbeing and vulnerability to trends and shocks of Fairtrade farmer households and their communities. 6. The involvement of children, broken down by age, gender, migratory status in cocoa production as well as the remediation and prevention strategies in place to mitigate these incidents. Key Research Questions and Research Objectives The research questions will analyze the current situation of Fairtrade communities including cooperatives, members and farmers through the framework of the three core goals of Fairtrade. In addition the research questions will be targeted to the following five levels: the national, cooperative, farm, community and 6

7 household level. The final list of research questions will be agreed upon between the consultant and the commissioning organizations. At the national level in both Ghana and Côte d Ivoire the study will: 1. Review the political, social and economic environment in which the cooperatives sit. Particularly it should look at current government and INGO/NGO institutions and policies in place that support the cocoa sector including the role of any parastatals in the pricing and sale of cocoa; institutions that build organizational capacity and networks; institutions that build farmer capacity to improve productivity and quality of cocoa in both countries; the current trading dynamics both within the certification and non-certification context for the cocoa sector in both countries and regionally; present any institutional strategies in place to eliminate child and forced labour. At the organizational level the study will: 1. Analyze current organizational management capabilities in the selected producer organizations, pre-existing contractual relationships, number of buyers, position in the value chain, access to finance, current trends in production, productivity, price negotiations, ability to cope with organizational shocks and any strategies for environmental management, mitigation of climate change and elimination of child and forced labour. 2. Analyze current cooperative management structures, participation of members (disaggregated by gender, age, migratory status) in the cooperative structure, cooperative level of influence in policies, institutions and processes at national level and regional level, the cooperative s current sustainability or resource management plans 3. Record and analyze what services are being offered or have been offered to support co-operative members as a result of Fairtrade certification and not. Examples including implementing productivity and quality improvements; environmental improvements, skills development, technology transfer, work safety, health and educational support to members and so on. 4. Assess the co-operative s existing knowledge and experience of Fairtrade and other certifications. 5. Assess the co-operative s own ability to understand the effectiveness of its work, to collect and manage data, and to identify and implement improvements. At the farm level the study will: 1. Analyze current farmer trading practices including amount of total product sold to cooperative, prices received, access to market information on cocoa and level of transparency in trading between different types of buyers and the farm, current payment terms, amount and type of processing that takes place at farm level. 2. Analyze perceived levels of participation and influence in cooperative decision making processes 3. Analyze farm resources, cost and type of agricultural and labour inputs, size and land ownership of farms, number and age of cocoa trees, productivity and capability to cope with environmental and trading shocks in cocoa farming. Analyze levels of crop diversity. Understand the physical infrastructure barriers to effective trading. Analyze current technical ability of farmers and sources of technical capacity building. Analyze current access to both formal and informal finance. 4. Assess farmers existing knowledge and experience of Fairtrade and other certifications. 7

8 5. Understand farming community perspectives on the future what changes would they like to see for the next generation of cocoa farmers? At the household and community level the study will: 1. Assess the physical infrastructure both within the organization and within the community (roads, equipment, transport, health and education services etc. 2. Analyze livelihood strategies of farmer households and percentage income that comes from cocoa. 3. Explain the distribution levels of household based on income, assets and other wealth sources of member households 4. Analyze current community decision making processes and participation and what role members of cooperatives have in these processes. Identify other NGO or government involvement in local communities. 5. Understand the perspectives of household members on the future, including those of women, young people and children what changes would they like to see, for themselves and their communities? Recommendations and Learning It is expected that besides providing a contextual analysis on the farm/household level socio-economic situation of cooperative members and their communities and the strength of the organizational governance and management the study will produce key learnings and recommendations on the anticipated and unanticipated challenges that are faced by producer organizations as a result of Fairtrade certification. Indicator Selection Indicators will be selected based on the finalized set of research questions and be taken from a globally agreed set of core indicators spanning the three Fairtrade goals (Make Trade Fair, Fostering Sustainable Livelihoods and Empowerment.) Before finalization there will be input on these indicators from the cocoa management team, Fairtrade Africa and Fairtrade International. During the field study there may be issues of local concern that may come up in discussion with community and organization members. These may not be part of the core indicator list, but may be of importance in terms of demonstrating the future impact of Fairtrade in this particular context. Therefore there will be flexibility to take on new indicators during the data collection process which can be used in subsequent impacts research. Sampling Strategy The criteria for sample selection will be: 1. Producer organizations from Ghana and Côte d Ivoire who have been certified with Fairtrade for one year or less or in the process of preparation for certification within the next six months 2. The sample will aim to include a range of producer organizations dependent on membership size, types of certification, and self-established organizations versus those set up by a trader or brand. 8

9 Methodology The study will use a combination of quantitative and qualitative techniques to collect data. The study will use the following data collection techniques: There will be: 1. An initial desk based research process to collect information on the context in which the producer organizations operate to contribute to data collection on research questions at the national level. At the organizational level there will be: 2. An organizational assessment survey carried out with the cooperative management structures to collect: a. Background data collection and analysis of trends on the production and economic performance of the organization prior to certification b. Information on cooperative structures that encourage participation/facilitate empowerment of members 3. Data collected from the initial auditing and selection process by E-Cert 4. Semi-structured interviews with cooperative management as well as members to expand on key trade and empowerment indicators and to validate results of survey 5. Where available any data already collected by producer organizations should be used by study group At the farm and household level: 6. Farm level survey to capture key data on production, crops grown, inputs, farming techniques sales and access to finance. 7. Detailed household survey with a proportion of farmers (men and women-disaggregated) who are members of the sampled producer organizations and who have taken part in the farm level survey. 8. Participatory workshops with semi-structured interviews, focus groups and other participatory methods with gender, youth and child inclusive methodologies to gain a deeper understanding of the socio economic conditions, challenges and opportunities facing both cooperative members and those who are within the community but are not part of the producer organization sampled. 9. Where possible the methodology must include targeted selection of rights-based tools It is expected that some of the research questions and data collection techniques be replicated as a counterfactual in each country. The research collected would be ideally done in two stages, with quantitative data collected first and a preliminary analysis done so as to direct the focus of the qualitative data collection aspects in the second stage. The use of innovative data collection techniques, such as the use of mobile phone technology, GPS, Sensemaker and participatory video would be highly supported. 9

10 It is part of FTA s policy to ensure that participating producer organizations are involved and input into the research process. Therefore prior to all research a pre-assessment workshop will be conducted with all selected producer organizations to introduce the study, to identify pre-existing data collection practices and data of interest to producer organizations. This pre-assessment workshop is also an opportunity to build capacity of producer organization to support in the data collection process. Project Outputs The selected research team should deliver the following project deliverables: 1. Detailed ethical and methodological plan, including all indicators and survey and interview tools, to be approved by the commissioning organizations prior to fieldwork starting. 2. A synthesis research report of around 100 pages in length not including appendices 3. Reports for each of the producer organizations studied, ideally in French for Francophone organizations 4. An executive summary of the full report 5. Key findings of the research summarized in a PowerPoint presentation Ownership of the report and all data collected will rest with the commissioning organizations. The structure of the report will be decided after field research based on consultation with the commissioning agencies. The report should be clear and simply written and containing detailed analysis. The research team should support their analysis with relevant data and state how this has been sourced. Recommendations should be realistic and should also include details as to how they might be implemented. We expect the report to include guidance on the process by which findings will be shared and discussed with all stakeholders including those who are benefiting from the project and how any resulting changes in the report will be included. Technical details and expansion of methodological methods should be included in the appendices, which should also include a list of informants and the evaluation team s work schedule. The deadline for the draft and final report will be agreed upon prior to the signing of the contract. The key findings and recommendations to be included in the report will be presented and will be taken forward by Fairtrade Africa and Fairtrade International to improve its operational work with Cocoa in Côte d Ivoire and Ghana. The raw data that has been collected must be compiled into an excel spreadsheet and delivered to the commissioning organizations with the draft report. This raw data should include both qualitative and quantitative research and the format will be in line with the requirements of the commissioning organizations. All photographs and video documentation must be provided alongside the draft report and raw data. 10

11 Consultancy team requirements/expertise The project will be awarded to an internationally-recognized research institution which can propose a research team meeting the following criteria. Essential Fluency in French and English and where possible knowledge of West African languages. Experience of conducting impact assessments or other types of programme evaluation or research Research experience within a relevant thematic context (e.g. research into value chains, livelihoods, or certification systems) Existing research experience, research networks and partnerships in the focus countries. Special focus on evaluation techniques and participatory research methods Experience of using innovative data collection methodology, including mobile phone and participatory video techniques Ability to present data concisely and clearly Demonstrable policy on research ethics Understanding of Fairtrade principles, key tools and approaches Prior experience in researching cocoa and knowledge of the cocoa sector in West Africa highly advantageous Disclosure of conflict of interest Timeline The research project should begin as soon as possible in June The field research phase will take place by end September All deliverables for the project should be finalized by 30 November Budget and terms The overall budget for the project will be 58,000 The entire research including report drafting and finalization of reports is expected to be completed within The commissioning organizations will provide all necessary information, background documents and guidance to the contractor. Individual members of the research team will be required to sign a confidentiality agreement which determines how data and information shared and collected during the research may be used and communicated. Members of the research team will also be required to be trained in and sign the Fairtrade International Child Protection Policy and Procedure for researchers, before beginning their fieldwork. 11

12 CALL FOR TENDER Baseline Study on Fairtrade Certified Cocoa Producer Organizations in Côte d Ivoire and Ghana Call published: 17 th May 2013 Tender Deadline: 14 th June 2013 FAIRTRADE AFRICA and FAIRTRADE INTERNATIONAL Fairtrade Africa and Fairtrade International are commissioning a baseline study on newly Fairtrade Certified Cocoa Producer Organizations in Côte d Ivoire and Ghana. The primary objective is to provide baseline data about a sample of newly certified cocoa producer organizations in Côte d Ivoire and Ghana to provide a benchmark by which to monitor progress and evaluate the impacts of Fairtrade certification for those producers. It is envisaged that this research will form the first phase of a longitudinal study, with follow-up work intended to be undertaken in 2-3 years time. The context, background, objectives, scope, suggested methodology and approach and expected outputs of the study are outlined in the Terms of Reference (ToR) document provided. Interested research organizations/consortiums are requested to send a brief to Catharine Russell (c.russell@fairtradeafrica.net) by Monday 27 th May 2013 to confirm their interest in submitting a tender, with final tender documents/proposals to be submitted to the same address by Friday 14 th June The tender documents submitted should include: Detailed research proposal based on the ToR provided that includes a clear description of the intended scope and methods to be used, work plan, potential risks, research policy and ethical standards to be followed and a detailed timeline (using the broad timelines provided in the ToR) Detailed budget for this study based on the broad budget ranged indicated in the ToR Description of the tendering party/parties highlighting relevant experience in undertaking global impact assessments and evaluations Detailed CVs of all members the proposed research team highlighting research experience relevant to the study Names and contact details of two organizations for whom similar work has been conducted in the last two years and submission of two examples of recent research work undertaken by the tendering part/parties in a related field Evaluation of proposals will be guided by the following criteria: Expertise and qualifications of the research team and research organization/s Understanding of Fairtrade and of the cocoa sector in Côte d Ivoire and Ghana Strength and appropriateness of methods proposed to answer the key research questions of the study with a special focus on evaluation techniques, methods of attribution and participatory research methods Quality of written reports Efficiency and use of resources Collaboration with research institutions/researchers in Côte d Ivoire and Ghana Applicants will be notified within 14 days of the submission deadline in writing about the results of the selection process. 12

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