Download Consultant to conduct South Asian market assessment for pulp/ puree

Terms of Reference
Consultant to conduct South Asian market assessment for pulp/ puree/
concentrate/ jam products produced in Gilgit Baltistan
Location: South Asia, Home Based
Duration: 10 working days (exclusive travel time, if required)
Mountain Fruits started off as a “dry fruit project” run by Agha Khan Rural Support Program (AKRSP) in
Gilgit Baltistan (GB), in the year 2000. The project was managed by the current CEO of Mountain Fruits,
Sher Ghazi. The company was registered as a private limited company in the year 2004 and AKRSP sold
the company to Sher Ghazi and his three other partners in the year 2007. The partners include Adam
Brett, Kate Sebag and Richard Friend, citizens of UK.
The company has been the lead enterprise in the area exporting dried fruits and nuts to the European
markets. Certified for Organic products and Fairtrade, the company exports approximately 50 tons of nuts
and 50 tons of dried fruits engaging 2474 Fairtrade farmers from GB. MFC is the most established
business in GB with a strong supply chain and reasonable international linkages with a turnover of
approximately PKR 100 million each year. The company’s main export products are dried apricots, dried
cherry, dried apples, walnuts, almonds and nuts oil.
The company’s main export product was dried apricot in the beginning because of the high production of
apricots in the region and its market potential. The focus has moved from apricots to nuts in more recent
years because of the ease of catering to larger quantities and less perishable nature of the product. The
company now intends to move into Organic and conventional (Fairtrade) further processing as the market
seems promising and MFC has the requisite technical and fruit collection capacity to cater to the demands.
The company has invested in the infrastructure for the facility, however, to move forward, MFC would like
to engage a consultant to study the market feasibility of such investments, in relation to available fruit
supply.
Background:
Particular regions in Pakistan have significant production of fruits and vegetables, however, they have
limited access to markets, leading to high post-harvest losses and less returns for farmers. Some of these
belts are remote and have limited processing and storage facilities, exacerbating the situation. GB is such a
fruit belt with small farmers and abundant production of apricots and other fruits, which at times saturate the
local regional market. There are a few companies procuring dried apricot from some valleys of GB for export
as Organic and Fairtrade produce.
For the markets being catered to by these export companies, only a few varieties of apricot are suitable for
drying due to their color, size, texture, sweetness and moisture content. Many varieties of apricot grown in
the region are not suitable for drying hence, provide little or no value to the farmer. Further, the companies
procuring apricots for drying only accept high quality, grade “A”, produce for the export markets: lower grade
fruit of these apricot varieties also have little value for the farmer.
MFC aims to enter the Organic or conventional pulp market and open new markets for GB’s local low grade
produce, which is not suitable for drying or high quality in appearance and size but suitable for further
processing. Additionally, MFC aims to cater to the Organic and Fairtrade niche markets as that would also
be advantageous for the farmers, who would receive higher returns. The niche market requires the suppliers
to meet the standards throughout the value chain, that is, starting from the farmer till the produce is
delivered to the customer.
The major trends observed in GB’s agriculture sector are but not limited to:

Mountainous terrain and lack of infrastructure make the region inaccessbile, leading to lack of
market access for fresh fruit.

Multiple varieties of apricots are grown in abudance, but not all these varieties have international
demand in dry or process form, at present.

Exporters in the region focus on dried fruit exports of commercial varities of apricots while apples,
pears, mulberry and cherry are also grown in abundance leading to high wastages.

Majority farmers in the region follow Organic practices because of neglegable pest and diseases
issues in region .
MFC is seeking a consultant who is capable of providing a market assessment of the potential to supply
South Asian markets on a scale that would make the business sustainable for MFC.
Objective:
This TOR requires the conduct of a market assessment to guide MFC’s future investment in processing of
locally grown fruits in GB and make recommendations to assist MFC to meet meet South Asian quality and
quantity demands of fruit pulp/ puree/ concentrate/ jams/ etc. The objective is to:
 Provide a report evaluating market demand, market pathways, competition, market access and
identify possible long term partners for processed, semi processed fresh fruits ingredients
including, apricots, apples, cherry and grapes (pulp, concentrate, juice, puree, etc.) under
Fairtrade, Organic certified and/ or conventional product categories in South Asia.
Methodology:
To achieve this objective, the consultant must go through the following steps:
1. The consultant will coordinate with MFC representatives to understand the needs of study and
MFC’s current business practices. He/she will be provided a description of potential products by
MFC in relation to the different fruit varieties that are grown in Gilgit Baltistan, the cultivation,
selection and grading methods used, product quality attributes (including Fairtrade and Organic
Certification compliance), and MFC projected supply (volume and seasonality) over the first three
years.
2. The consultant will conduct South Asian market assessment for Fairtrade and/ or Organic and/ or
conventional pulp/ puree/ concentrate/ jam products produced in Gilgit Baltistan. Particular focus
be given to the main markets, target audiences, price points, quantity and quality of final product in
demand, keeping in mind the supply side feasibility with reference to the fruit species and
quantities available in the region, the location of the processing facility and capacity requirements
to be fulfilled.
3. Report by consultant will also include market development strategy comprising of
recommendations based on assessment.
4. MFC will comment on draft report within 7 days of submission, after which the consultant will
address comments to finalize report, to be agreed upon by both parties.
5. Technical assistance may be required during the time course of the implementation of the
recommendations at facility level. The consultant will guide MFC in implementing these
recommendations. This will be home based through video/skype call and will be communicated to
the consultant before time by MFC.
Deliverables:
Methdology, steps, deliverables and approximate time allocation are outlined in the table below.
STEP
Step 1: Consultant
confirms description of
potential products is
sufficient to proceed
DELIVERABLE

Coordinate with representatives of MFC.

Understand the requirements of study, agriculture in GB and
the work already being done
DAYS
+/- 0.5 days
Deliverable:

Confirmation that sufficient information has been provided, via
email.
Note: The consultant will invoice MFC on the first 30 percent of the
compensation.
Step 2: Conduct
assessment of
potential of catering
Organic and/ or
conventional pulp/
concentrate/ puree/
jams/ etc. to South
Asian markets.

Review of relevant regulations, food companies, importers,
other businesses and relevant stakeholders in South Asian
pulp/ concentrate/ puree/ jam/ etc. market.

Independent research involving secondary data and meetings
with relevant stakeholders.

Extensive consultation with MFC to understand the company’s
views and requirements.
MFC will provide copies of
some reports however
additional independent
research will be required.
Deliverable:

Draft report (format attached)

Other relevant findings including but not specifically required in
attached report format.
+/- 7.5 days
Note: After the submission of the draft report, the consultant will
invoice MFC for 40 percent of the fee.
Due Date: April, 2015
Step 3: Finalization of
report and
recommendations.

Results report finalized incorporating any comments from MFC,
involving further stakeholder consultation or research; to be
commented on by MFC within 7 working days of submission.

At different stages of the implementation of recommendations,
home based assistance will be provided to MFC.
Deliverable:
1) Final study report and recommendations to be submitted to and
accepted by MFC.
+/-2 days
Note: The consultant will MFC for the 30 percent of compensation
after submission of the final report.
Due Date: May 2015.
2) Provide home based assistance to MFC during implementation, if
needed.
Due Date: Dates would be decided on need basis and in
accordance with availablity by and before November 2015.
Total Days
10 days
The distribution of days between steps is indicative and can be changed if needed. The assignment cannot
exceed a maximum of 10 working days.
Technical Direction:
The consultant will work under the guidance of Mr. Sher Ghazi, CEO Mountain Fruits (Private) Limited.
He/she will update the team on the progress of the assignment and will inform the MFC team immediately if
contract deliverables as defined above cannot be met.
Education, Skills, Knowledge and Experience:
The successful condidate should demonstrate:

Excellent knowledge of the international pulp/ puree/ concentrate/ jams market, Organic and/or
conventional, Fairtrade regulations and fruit processing industries.

Strong relevant experience in the market studies, preferably for food processing industries.

Working experience in South Asia.

A university degree in business administration, international business or equivalent and with 8-10
years of practical field experience.

Excellent communication skills and fluency in English.
Application Process
Further information on the position can be obtained by emailing [email protected]. The deadline for
submission of applications, including an up-to-date CV, is 20 March, 2015. Applications should be emailed
to [email protected]. Please quote ‘South Asian Markets Consultant’ in the subject line.
Report Format: MFC Market Potential
Description of potential products (Provided by MFC)

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Fruit Pulp Products
Cultivation & Selection and Grading Method
Product Quality Attributes (including Fairtrade and Organic Certification compliance)
MFC Projected Supply (Volume & seasonality) over the first three years
Market Characteristics (Desk Study)

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Current Consumption Patterns
Future Demand Trends
Current Market Paths for Fruit Pulp
Potential Market Paths for Fruit Pulps
Critical Quality Issues
Fairtrade and/ or Organic Certification Impacts
Competitive Products
Prices (Sources)
o Potential Market Prices
o Prices of Substitutes
Processing

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Preferred Product Format
o Most Important: juice/ puree/ pulp/ concentrate/ jam; quantities
o Secondary Issues: pulp/ frozen/ UHT; bulk/ consumer packaged
Quality Management Requirements
o Including but not limited to acid percentage, sugar percentage, colour, texture
and flavour
Packaging and Labelling Requirements
Environmental and Social Issues Requirements
Market Access Issues


Access Barriers
Tariffs and Quota
Trade Structure

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Companies involved in Pathways to Market
o Including at least 3 that are willing to enter into further discussions with MFC
Suppliers of Competitive & Substitute Products
Market Shares
Potential Partner Companies
SWOT Analysis
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Internal Analysis - Indicate strengths that place MFC at and advantage over competition
External Analysis - Review weaknesses of MFC’s ability to compete
Opportunities - Identify largest opportunities to supply into
Threats & Risks – Identify threats to expanding into the South Asian market
Market Development Strategy

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Barriers to Entry
Recommended Pathway to Market (Distribution channels)
Recommended Partners
Recommended Pricing Policy
Recommended Marketing & Promotion Strategy
Annexes

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Fruit Pulp Traders
Trade Associations
Potential Customer Companies
Other Useful Contacts