U.S.-Pakistan Partnership for Agricultural Market Development (AMD)

Request for Applications (RFA) No.RFA/MEAT/001

Matching Grants for Integrated Supply Chain Support for the Meat Sector

Issuance Date: 6th November, 2015

Closing Date: 22nd January, 2016

Closing Time: 05:00 pm [Lahore, Pakistan]

Subject: Request for Application (RFA)

Dear Applicant:

The U.S. – Pakistan Partnership for Agricultural Market Development (AMD), implemented through the United States Agency for International Development (USAID), is seeking grant applications for implementation of its Integrated Supply Chain Support for the Meat Sector Program. AMDinvolves provision of technical assistance and grants under its supporting the development of Pakistan’s commercial agriculture, particularly through improving the ability of Pakistan’s agriculture and livestock sectors to meet both international and domestic demand in targeted product lines in citrus, mango, high value/off season vegetables and livestock.

The grants will be awarded and implemented in accordance with USAID and US Government regulations governing grants under contracts and AMD’s internal grant management policies (AMD Grants Manual).

Award will be made to responsible applicant(s) whose application(s) best meets the requirements of this RFA and the selection criteria contained herein. Issuance of this RFA does not constitute an award commitment on the part of the AMD nor does it commit the AMD to pay for costs incurred in the preparation and submission of an application. Further, the AMD reserves the right to reject any or all applications received. In addition, final award of any resultant grant(s) cannot be made until funds have been fully appropriated, allocated, and committed through internal USAID procedures. While it is anticipated that these procedures will be successfully completed, potential applicants are hereby notified of these requirements and conditions for award. Applications are submitted at the risk of the applicant; should circumstances prevent award of a grant, all preparation and submission costs are at the applicant's expense.

Annexes included with this Request for Applications:

- Annex A – Grant Application Form

- Annex B – Applicant Self-Assessment Form

- Annex C – Required Certifications

- Annex D – Survey on Ensuring Equal Opportunity for Applicants

- Annex E – Standard Provisions for non-U.S. Nongovernmental Organizations

SECTION I.A PROGRAM DESCRIPTION

The U.S.-Pakistan Partnership for Agricultural Market Development (AMD) activity in Pakistan is a $21.2 million activity funded by USAID and implemented by CNFA with the goal of supporting the development of Pakistan’s commercial agriculture, particularly through improving the ability of Pakistan’s agriculture and livestock sectors to meet both international and domestic demand in targeted product lines in citrus, mango, high value/off season vegetables and livestock. AMD aims to achieve this through two complementary objectives:

  • Increase the efficiency, quality and profitability of select product lines, through the adoption of production, marketing, and business organization management practices that will transform supply chains of select specific product lines to higher levels of production. AMD will facilitate increased demand for Pakistani agricultural products and foster supply-demand synergies between producers and buyers, thereby complementing supply-side improvements by the USAID Agribusiness Project (UAP);
  • Improve market linkages within targeted product line chains and develop the institutional capacity of catalytic actors within chains. AMD will work with processors, traders, retailers, and ancillary service providers that support the targeted value chains.

To reach these goals, the AMD team envisions transforming the four targeted product lines into efficient, private sector-led value chains that deliver competitive products to domestic and export markets. AMD’s targeted training, matching grants, and technical assistance will leverage private sector investment and encourage innovation. Together, these approaches will support upgrading, streamline supply chains, optimize profit margins, increase participation of women entrepreneurs, and ultimately make Pakistani mango, citrus, meat and HV/OSV more profitable and more competitive.

I.BGRANT OBJECTIVE AND SCOPE

The objective of these AMD grants is to support the development of a Pakistan commercial meat sector to sustaining both international and domestic market demand. The aim of the AMD Partnership is to improve the ability of Pakistan’s commercial livestock sector to better compete in international markets. AMD seeks to encourage investment in the sector through matching grants and to empower stakeholders by developing synergies among them to accomplish together what they cannot do alone. The AMD partnership envisions transforming the meat sector into an efficient private sector led value chain that delivers competitive products to domestic and export markets.To that end, this RFA envisions awarding grants in three activity areas, as detailed below: 1) breed improvement 2) feedlots and 3) value-added meat processing/co-products development.

  1. Breed Improvement
  1. Objective (narrative)

Increase the distribution of quality semen with Artificial Insemination technology, at competitive prices, for village animal owners. The intervention will increase household incomes through the higher performance capability of both milk producing female cattle and beef producing male calves. At least 50% indirect beneficiaries of the program will be the rural women.

  1. Scope

AMD breed improvement grants aim to encourage the greater use of artificial insemination for livestock reproduction of small and medium sized rural farmers and village household animal owners that have 1 to 10 milking animals. This demographic owns over 90% of the total cattle and buffalo herd in Pakistan. However compared to both developed, and developing countries, Pakistan uses AI breeding sparsely in these rural areas, thus distancing the village livestock owner from breeding a more productive animal and subsequently realizing their true potential.

AMD through an integrated approach aims to increase the backward supply of higher performing breeds by reducing the cost of the AI package to the village livestock owner. The AI service and supplies companies, in conjunction with the cost management initiative, willwork with a network of employed AITs in the geographic areas where the first right of refusal for the purchase of male offspring are linked to a feedlot. This willfocus the AIT’s semen distribution within smaller geographic areas, lowering the overall AItransportation costs to the village livestock owners, thus increasing the coverage of breeding services through AI technology.

  1. Expected Outcomes

•Partnerships with at least 4 semen service and supply companies

•Access of livestock owners to affordable quality semen, qualified advisers, fertility control skills, improved performance progeny and an increased financial gain from both female calves and the male progeny.

•Generation of male progeny reared to specification will gain weight faster, consume less feed, and produce a carcass of higher quality.

•Production of female progeny with the ability to produce more milk, increased disease resistance, and longer lifespan than their dams.

•An affordable and sustainable outlay benefiting household women as primary livestock owners in a small holder production system.

•Development of a traceability system with a database to record each step through the supply chain.

  1. Feedlots
  1. Objective

Development of feedlot finishing farms for increased sustainable production of in-demand meat animals to meet local and export requirements.

  1. Scope

Existing livestock meat resources are mostly raised by conventional methods, resulting in low carcass elevated age to weight ratios, and lean quality red meat production, leaving export market demand unmet. A lack of organized cattle feedlot facilities, efficient herd management systems, local pricing mechanism, semi-controlled retail prices of meats, and slaughtering of unhealthy and old animals are constraints faced by the sector.

The objective of the AMD Project is to support the development of Pakistan’s commercial livestock sector to meet both international and domestic demand through targeted training, matching grants, and technical assistance.These efforts by AMDto improve the backward supply chain aims to leverage private sector investment and encourage innovation in this important sector through the development of commercial feedlots. The AMD grant package and technical assistance under the feedlot intervention will support the development of a backward supply system forquality calves, appropriate facilities, feeds, business plans and key performance data to develop a sustainable relationship between the Feedlot and the cattle farmer.

  1. Expected Outcomes

•Establishment of at least 7 commercial feedlot farms having at least 500 animals/farm as a viable business model with economy of scale.

•Development of formal linkages with abattoirs and processors to supply the animals to market demands.

•Development of formal linkages with the male calves resulting from the breed improvement program

•Provision of a consistent and competitive market option for small holder female livestock farmers in remote rural areas to sell their male calves after weaning.

•Skilled and capable Human Resource supply available in rural areas.

  1. Value Added Meat Processing/Co-products Development
  1. Objective

Expand existing meat export base through diversification of product lines focusing on new market segments.

  1. Scope

AMD will assist abattoirs and related processing industries in diversifying their facilities and increasing value addition for meat products and by-products through matching grants. Currently, most existing facilities are unequipped for value addition and improvement is needed for hygienic processing of meats and meat by-products. AMD will assist abattoirs and meat processors in developing sustainable business linkages with the supported feedlots, improve their facilities where needed, and help diversify products. Diversification will take the form of meat value addition. Moreover, through matching grants and technical assistance, the project will provide support for the technological upgrading of processing facilities, including acquisition of deboning equipment, cryovac meat packaging equipment, value-added product development, and cold chain handling.

This intervention will assist the Pakistan meat exporters to sell a higher value product in existing and new markets while moving their food safety standards to an ISO22000 certification.

  1. Expected Outcome

•Upgrade at least 5abattoirs and suppliers with improvements in their food safety standards to ISO22000 certification as part of the application of this grant.

•Technology transfer to the meat export industry with upgraded facilities including acquisition of deboning and vacuum packaged equipment, value added product development and cold chain facilities.

•Export based abattoirs and processers will be linked with individual feedlot farmsproducing quality beef animals to ensure the exporters a sustainable supply of animals for in-demand products.

I.CDESCRIPTION OF MATCHING GRANTS

  1. Breed Improvement
  1. Description

The matching in-kind grant ofsemen of certified and high quality local cattle breeds will be provided on cost share basis to the registered AI distributor firms on a 1:2(AMD:Grantee) contribution ratio. Up to 50% of the in-kind contribution by the private sector partner can be from existing assets related to the activity while the remaining 50% will be newly purchased semen from registered suppliers andas per specification of the project. The distributors should have, or be willing to engage, registered AITs as employees. The distributor partner will also be encouraged to hire technical staff for the AI services during program implementation. The distributors will work within target areas where AMD proposes to support commercial feedlot farms.As part of the distribution model, socially proactive women will be engaged at village level by the AITs as Village Focal Women for communicating timely insemination of animals. The AIT (and the Village Focal Woman where applicable) will be trained on selection of the proper animal to be inseminated. Training will beprovided by AMD through an approved training service provider. The service provider will have gender integration experience and will apply this experience in identifying women participants. A traceability data base managed by the feedlot will be implemented through an independent service provider. The distributor will be responsible for the collection of data at each step of the insemination program implementation for entry into the database.

  1. Who can apply?

Registered AI distributors as detailed in Section III.A

  1. Feedlots
  1. Description

The matching grant aims to support the established commercial feedlot finishing farms while cost sharing with private sector on a 1:2 (AMD:Grantee) contribution ratio. Up to 50% of the in-kind contribution by the private sector partner can be from existing assets related to the activity while the remaining 50% shallbe new investments in the business. Preference for grant support will be given to already established feedlot businesses. This grant will focus on support for the introduction of feedlots as commercially viable business models to produce quality beef for both domestic retail and export market. AMD, through its integrated approach to support breed improvement, feedlots and added value processing in the meat sector, aims to strengthen these enterprises and linkages and thereby increase the supply and availability of quality animals with an optimized age to weight ratio. The feedlot will be directly linked with livestock owners in the cluster of surrounding districts with existing or proposed feedlots where improved quality male progeny generated through the AMD supported AI program will be marketed. The feedlot finishing farms will also be linked with export based abattoirs to sell their fattened lots at competitive prices while ensuring specification of the exporters.

  1. Who can apply?

Private farmers, businesses as described in Section III.A with access to land and having experience in livestock related business development.

  1. Value Added Meat Processing and Co products Development
  1. Description

The matching in kind grants of meat processing and packaging machinery and equipment will be provided on cost share basiswith abattoir owners and processors already involved in the meat export business. The cost sharing ratio will be 1:2 (AMD:Grantee). Up to 50% of the grantee contribution can be existing assets related to the activity while the remaining 50% will be new investment. The objective of the AMD grant is to add value to existing processing and provide a pathway for the processor to meet ISO 22000 standards and eventual certification. AMD will assist the grantee with the services of afood safety standards expert for guidance on obtaining the required certification. The intervention will also support the granteesto target new clients in export markets, access to innovative technologies for improved processing and packaging of produce.

  1. Who can apply?

Registered abattoirs, exporters and processors.

I.D.AUTHORITY/GOVERNING REGULATIONS

USAID’s AMD grant awards are made under the authority of the U.S. Foreign Affairs Act and USAID’s Advanced Directive System (ADS) 302.3.5.6, “Grants under Contracts.” Awards made to non-U.S. organizations will adhere to guidance provided under the following:

  • ADS Chapter 303, “Grants and Cooperative Agreements to Non-Governmental Organizations”;
  • Standard Provisions for non-U.S. NGOs;
  • 2 CFR 200 UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS; and
  • 2 CFR 700.

All awards made to non-U.S. organizations will be within the terms of the Prime Award and AMD’s grants procedures.

AMD is required to ensure that all organizations receiving USAID grant funds comply with the guidance found in the above regulations, as applicable to the respective terms and conditions of their grant awards.

SECTION II. AWARD INFORMATION

AMD anticipates awarding 4,7 and 5 grants respectively in the following three grantcategories with a range of grant amounts from 5,000,000 to 12,120,000 PKR. The award funding can be increased depending on the nature and size of the project/grant. These grants will be awarded to privately owned commercial organizations having strong financial capacityto meetthe required cost share contribution.

The duration of grant awards under this solicitation will vary depending on the nature and size of the project/grant. It is expected that these grants will be issued for 12 months. AMD may increase the period of grant and funding depending on performance of the project, availability of funds and USAID approval. The estimated start date of grants awarded under this solicitation is four months after issuing date of this RFA.

AMD matching grants have a minimum cost share requirement of 1:2 (AMD:Grantee). The applicant will provide 2/3 of the total amount of the grant which can be funded from non-USG sources which may include own equity, private sector or bank finance. AMD will fund the remaining 1/3 of the activity amount. (See section “III.D Cost share” of this RFA for further details)

Illustrative Matching Grants per Activity:

  1. Matching Grant for Breed Improvement – In kind Grants of Semen of proven bulls as per AMD specification breeds and traits. Amount : 5,050,000to 10,100,000 PKR
  2. Matching Grant for Feedlot Farm– In-kind Machinery, Equipment, and Advanced Technology Transfer for Feedlot Farm Facilities. Amount:5,050,000 to12,120,000 PKR
  3. Matching Grant for Meat Processing and Co-products Development - In kind Grant of Advanced Meat Processing and Packaging Technology based machinery and equipment. Amount: 5,050,000 to 9,090,000 PKR

II.A.TYPE OF GRANT

While AMD will consider three different grant mechanisms during the implementation of the grantsprogram (simplified grant, standard grant, and in-kind grant), the Project expects to primarily award In-Kind grants, whereby goods and services will be procured directly by AMD in close correspondence with the grantee. Once purchased, goods and services are delivered immediately to the grantee or to the grant activity. All procurement undertaken on the grantees’ behalf by AMD will be done in compliance with USAID’s procurement regulations. No financial disbursements are made directly to the grantee under an In-Kind Grant; rather AMD procures all necessary commodities and services on behalf of the grantee.