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TERMS OF REFERENCE
TO CONDUCT NEEDS ASSESSMENTS OF FLOWER SECTOR IN EASTERN
CENTRAL AFRICA REGION IN ORDER TO BETTER BENEFIT WORKERS ON
FAIRTRADE CERTIFIED PLANTATIONS
1. Background
Fairtrade Africa (FTA) is the umbrella organization representing Fairtrade certified
organizations in Africa. The mission of FTA is to support members’ and strengthen their
organizations in line with Fairtrade Standards; Improve and Increase members’ ability to
access Fairtrade markets and, engage with members to advocate for their interest and take
active ownership of the Global Fairtrade system. FTA has a membership of over 1 million
farmers and workers across 33 countries in Africa and the Middle East.
In line with Fairtrade Global Strategy (2016 – 2020), FTA will support workers in plantations
through impact based activities. The Fairtrade flower sector employs around 40,000 workers
in Ethiopia, Kenya, Tanzania, and Uganda. In 2014 639.4 million stems were sold globally
on Fairtrade terms and workers received euros 5.622,000 in Fairtrade premiums. Workers in
Africa and Middle East received euros 4,707,600 euros in Fairtrade premium representing
20% of total premiums earned.
Having previously focussed on pre and post certification support, FTA will now focus on
impact and demand driven services. To do this, a thorough analysis of the sector will be
conducted to enable Fairtrade Africa identify key areas of focus over the next 5 years.
2. Rationale
2.1 Global Context
The flower industry in Africa has been growing steadily resulting in increased competition at
source and target markets. The cut flower value chain is increasingly dominated by large
and sophisticated European mass-market retailers, which has resulted in a shift of
purchasing power from wholesalers and the Dutch auction system towards mass-market
retailers. On the other hand, some producers are increasingly vertically integrated up to
import level. This in combination leads to constantly reducing opportunities for independent
smaller companies and a high price pressure from mass-market retailers which leads to
stable prices for cut flowers for several years now with increasing input costs and exchange
rate risks for flower farms. Certain political pressures including Brexit and recent EPA
negotiations are either compounding or enhancing the risks around these issues and have
caused some buyers to already switch countries of origin for their product.
The above mentioned increased short supply chain leads to a very high interest and concern
of retailers on the conditions and impact on the ground. They know immediately what is
happening in their farms and would like to have recent, detailed and direct impact
information on a regular basis.
It is also important to note the changes in how international trade is now largely organized
along regional lines. African and European countries are the principal suppliers for the main
European markets, while the North-American cut flower market is mainly supplied by
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Colombia and Ecuador leaving Japan and Hong Kong to primarily source from Asia-Pacific
countries (including China).
2.2 African Context
There have been increased negative and positive NGO and media campaigns in several
European countries to raise awareness about working and living conditions of workers on
flower farms and especially the impact of pesticide residues on environment1 and the health
of workers and the income (living wage) and housing conditions2 of the workers. On the
other hand Governments in selected African Countries are still questioning the certification
models in as far as how much they enable increase in foreign currency deposits and
remittances to Africa and how premium can broadly benefit society. There is also lack of
clarity on how producers adequately meet statutory obligation in importing countries to which
most of the producers are residence. As nationals who have companies that are externally
based, and seen as contributing to development and increased export earnings for host
countries in the south the extent and conditions for tax exemptions that maybe applied are
not so clear. Further to this, challenges have been experienced in demonstrating the real
impact of Fairtrade Premium on workers lives through social projects in hired labour settings,
including the flower sector. There is a greater sense by producers that workers cannot
manage premium, and also that it is not in the interest of producers to support management
of premium if they do not benefit from it. The reasons for these kinds of attitudes are varied
and need to be investigated. However in a system where benefiting workers’ is part of the
central mission of Fairtrade we need to understand how to improve this situation.
Fairtrade in its Global Strategy 2020 – ‘Changing Trade – Changing Lives’ is committed to
ensuring that workers on flower farms receive improved wages up to and including Living
Wage levels in proportion to the volume and value of business plantations do on Fairtrade
terms. This work is being undertaken as part of Fairtrade’s Wage Improvement Project
endorsed by the whole Fairtrade system which is focussing on defining mechanisms that will
allow value to be transferred to wages from different points in the value chain including
potentially pricing, supplier contributions and/or premium use.
Furthermore the Fairtrade System is working to minimize the unequal treatment of farms in
African countries as they have different cost structures. The difference is especially high and
critical between Kenya and Ethiopia. Ethiopia sells to lower prices due to lower input costs
(ex. no national minimum wage defined) which leads to lower premium shares as well as the
premium is linked to the FOB price (10%). Projects such as an international floor wage for all
flower farms (1.90$ PPP/day), a possible minimum price and a minimum/fixed premium are
currently being cared of.
2.3 Producer Context
While Fairtrade certified flowers from Africa are making it into key markets, there is a lot
more to be done at the producer level and within countries and communities where
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The impact of flower farms on the environment very often gets mixed up by the press with the effect of more
people living in the surroundings of flower farms and their impact on the environment.
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On the farm and outside
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producers are located. Flower farms in Africa rely on hired labour that can be categorised as
local; local people migrating to different regions for employment and immigrants from other
countries. This brings about challenges relating to social development compliance especially
in areas relating to relevance of social investments, gender discrimination and protection of
marginalised and minority groups, sexual harassment, workplace conditions and provisions,
freedom of association, and appropriate premium use and management among other issues.
Ten years after the setting up of Fairtrade in Africa, the Fairtrade brand especially among
governments, producers, NGOs and workers is still not well understood. While certification
schemes are now widely known, Fairtrade still has the opportunity to curve its niche as an
alternative model to development.
The one size fit all services to producers in a continent with producer countries with hugely
diverse operating context creates model application challenges. FTA has inherited a
producer services model that was developed in the North to manage and camouflage non-
compliances by producers mainly focusing on pre and post certification. Demonstration of
social impacts in the South has not been on the agenda, and the transitioning of the
producer services, coupled with the 2016 – 2020 Fairtrade Global Strategy, demands that
there should be a better demonstration of social benefits of the Fairtrade model. With the
increase of producers in the system, limited budget and higher expectations – there is need
for provision of services that demonstrate innovation in producer services.
FTA is therefore seeking services of consultant to undertake a needs assessment of the
flower sector in Eastern Africa. Results of the needs assessment will inform the work to be
delivered to the flower sector over the next 5 years.
The following are the number of certified flower farms in the eastern Africa region:
Country Number of certified flower
farms
1 Ethiopia 8
2 Kenya 40
3 Tanzania 3
4 Uganda 2
Total 53
3. Purpose and objectives:
The Purpose of the needs assessment is to come up with a report that will inform the
services delivered in the flower sector within the 2016 – 2020 strategy
The objectives of the needs assessment will be:
a) To provide clear understanding of the issues of Fairtrade flowers farms in Eastern
Africa.
b) Propose, based on evidence priority areas where FTA should focus in provision of
services in the next 5 years to deliver impact to workers.
c) Present a monitoring, evaluation and learning plan
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d) Provide any other specific recommendations to FTA or other sectoral stakeholders
based on evidence.
4. Key activities and tasks
a) Confirm the objective and scope of the assignment with Fairtrade Africa
b) Review existing studies and reports which have been conducted in support of
service delivery
c) Review of the supply chain including market side requirements
d) Develop a methodology for getting a representative sample with flower farms in
Eastern Africa (Kenya, Ethiopia, Tanzania and Uganda) and propose the critical
groups to meet with to deliver the study objectives.
e) Propose a methodology for assessing services currently delivered to flower farms
f) review of the programs of the wider Fairtrade system relevant to the flower sector i.e.
workers’ rights strategy
g) Set up meetings with key stakeholders in the Fairtrade system-relevant FTA staff,
relevant National Fairtrade Organisations (NFOs), retailers and super markets where
necessary.
Develop the relevant tools for needs assessment and present to FTA for approval before roll
out.
5. Deliverables
1. An inception plan clearly indicating activities, timelines and delivery plan. This will be
accompanied by all the tools intended to be used in the task.
2. A comprehensive report based on the objectives of the needs assessment in soft
copy and hard copy (Spiral bound)
3. A summarized presentation highlighting top level findings
4. Recommendation on services based needs and issues identified
5. Monitoring evaluation and learning plan based on the identified needs
6. Organise a one day-day dissemination workshop/meeting with Fairtrade Africa and
key stakeholders
6. Reporting
In all matters relating to the needs assessment, the consultant/firm will report to the Head of
Region Eastern and Central Africa, Fairtrade Africa
7. Timelines
The assignment should be completed with 28 working days including report writing and
presentation
8. Consultant’s Profile
Interested consultants should have good knowledge of the flower sector as the study is an
opportunity to redefine service delivery within the sector. At the minimum, the consultant(s)
must possess the following:
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a) At least a degree in the fields of Social Sciences, Agricultural Economics, Statistics,
Research Methodologies, Development Studies and any other related fields.
b) Knowledge and experience in conducting feasibility studies and participatory
methodologies and approaches such as PRA, situational and problem analysis.
c) Good understanding of the flower supply chain.
d) Knowledge and experience in working with Fairtrade Flower flowers will be a clear
advantage
9. Application Process
While preparing the Proposal, applicants must include the following:
a) A brief description of the consultancy firm or consultant and an outline of recent
experience on assignments of a similar nature.
b) Consultants interpretation of the TOR
c) A description of the methodology, financial and technical proposals including work
plan for performing the assignment.
d) At least 3 references of similar assignments that the consulting firm or consultant has
undertaken in the last 3 years.
e) Sample of some of the works done by the consultancy firm or the farm.
f) CVs of the consultant including the members who might be engaged for the
assignment.
Interested and qualified consultant(s) are requested to submit their proposals to
recruitments@fairtradeafrica.net by close of business on 31st January 2017.