TERMS OF REFERENCE [MEAT END MARKET TRENDS STUDY IN KENYA ] 1. BACKGROUND

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1 TERMS OF REFERENCE [MEAT END MARKET TRENDS STUDY IN KENYA ] 1. BACKGROUND 1.1. Kenya Markets Trust Kenya Markets Trust (KMT) is a Kenyan organization that works in partnership with the private sector, county and national government to unleash large scale, sustainable market growth by changing the underlying incentives, capacities and rules that shape how markets work. We focus on markets as they are the main mechanism through which wealth is created and growth occurs and our long-term goal is to deliver large scale, systemic change in selected markets that benefits all players including small businesses, larger firms, investors, producers and consumers. To achieve this, we identify markets with high growth potential but which are saddled with systemic constraints. Working with key market actors, policy makers and other stakeholders, we address these constraints to improve competitiveness, efficiency and inclusiveness. For the past 3 years, KMT has been designing and implementing additional sector strategies to apply the KMT theory of change across a portfolio of market systems that offer significant pro poor growth potential, predominantly in rural areas of Kenya. The programme has interventions already underway in dairy, rural & urban water markets, agricultural inputs & supplies, extensive livestock and seed. As a result, we hope to grow the range of market opportunities, support competition in these sectors, eventually creating a market system that is profitable to investors, improves incomes for suppliers and is beneficial to consumers The Livestock Sector The Livestock sector has been implementing KMT interventions with the aim to improve performance in the three pillars of the sector: Ø Primary production: Improved livestock production support services will increase livestock survival, health and saleability, and sustain the rangeland ecosystem. One million pastoralists will routinely insure their livestock against drought-related mortality. Animal health input and distributors and service providers will operate in fourteen ASAL counties, providing quality and affordable veterinary Page 1

2 products. Sustainable rangeland management practices will result in the rehabilitation and better management of 48,238 hectares of rangeland in the next fifteen years. Ø Route to market: Improved aggregation, finishing and trade services will add value, increase efficiency and maintain quality to meet market requirements. As a result, 40% of pastoralists livestock accessing markets will be finished to meet market requirements. Ø End market: The processing of livestock products will be more productive, quality-, safety- and market-driven. Consumer and retail preferences and practices will have shifted from hot to cold chain, increasing quality, safety and product differentiation. Cold chain will account for 70% of local meat consumption, reducing the perishability of fresh meat by 50%. Per capita consumption of meat will increase by 10%, as a result of product differentiation and meat of a higher quality that is supplied consistently, conveniently and hygienically Assignment KMT livestock sector is seeking to facilitate an enabling environment for improved and reliable demand for differentiated, affordable and safe livestock products by consumers. To meat traders and consumer voice groups seeking to diversify their marketing strategies, lack of information about the size and the composition of the consumer meat market is a major barrier. For example, meat traders seeking to target specific consumer types cannot do so because of the absence of information on the number of consumers in this targeted geography, consumer preferences and demand profiles. Also, investment in diversification is highly risky. The study will be the first step towards understanding meat consumer market and thereby contribute to the development of strategies towards investing in disruptive innovations shifting from hot to cold chain. This assignment will be guided by the following:- No. of livestock slaughtered in the town/centers No. of outlets/ butcheries in each urban and peri-urban market Per capita consumption analysis per region Incentive for investing in cold chain /level of understanding of the cold chain and their accrued benefits Clear understanding of the buyer as a decision maker Page 2

3 2. SCOPE OF WORK This assignment will entail: a) A consumer segmentation study, focusing on consumers in key urban and peri-urban markets seeking to: Identify and profile consumer segments including consumers of processed and hot chain meat products. Provide a geographic, demographic, social-economic and psychographic profile of each segment. Identify rank-order, functional and emotional attributes that drive meat consumption per product by segment. Identify consumer needs-status per segment. Identify habits and attitudes with respect to the meat category per segment. Determine each consumer segments perception and understanding of quality as a meat attribute Determine willingness to pay premium for higher quality meat. Identify the sources of information and factors that influence each segment s decision to buy respective meat products. ii) Retail Survey, focusing on retailers in key urban and peri-urban markets seeking to: Identify the current retail channels in the formal meat market. Identify the geographic penetration of refrigeration units/cold chains. Identify the product range offered to consumers in the informal marketing, including unit sizes, packaging and relative pricing. Quantify current availability per processed meat product, brand and pack size within formal distribution channels and identify in which geographies and retail channels processed meat products are under-distributed. Determine the challenges and opportunities in the retail market. Page 3

4 Describe marketing strategies and models in use by retailers Identify Policy and policy advocacy gaps 3. DELIVERABLES The consultant will provide the following deliverables: a) Consumer segmentation report. b) Map of meat retailers in Kenya. c) Policy issues and policy advocacy opportunities report 4. SKILLS AND EXPERIENCE REQUIRED The assignment will be undertaken by the consultant/research firm meeting the following qualifications; 5. MANAGING DELIVERY Degree in Business studies; commerce, Marketing, Research or a related field study.( Research firm) At least three years experience in development work related to the livestock sector in Kenya. Demonstrated capacity to conduct market and business research and report writing. Experience in designing and conducting consumer studies/market research for agricultural value chains. Proven track record in providing consulting and capacity development services. Experience in application of participatory methodologies, participatory research methods, participatory planning, monitoring and evaluation methods and techniques. Ability to manage stakeholder relationships and expectations. Strong communication and computer skills. The research firm/consultant will report on day to day to KMT livestock intervention manager/officer who will be managing the research process. Page 4

5 6. SCHEDULE OF EVENTS 1. Questions regarding this request may be addressed to KMT procurement on and must be received no later than 21 st February Responses to questions will be distributed to all interested parties no later than 15 th February, Completed responses to the RFP with subject line Meat End Markets Trends Study in Kenya should be addressed to the same address: by 27 th February Page 5