Terms of Reference (TOR)

For
Agricultural Marketing System Survey

1. Background of the Project

In response to the official request of the Government of the Republic of
Indonesia, the Japan International Cooperation Agency dispatched the Second
Detailed Planning Survey Team to discuss the Scope of Work for the Study of the
Project.
The main items of the Project are as follows;
(1) Objectives of the Study
To assist the Government of Indonesia to reform the domestic distribution
mechanism through conducting the Study on wholesale markets
(2) Contents of the Study
The contents of the Study are;
1) To implement a Feasibility Study (F/S) on establishment of an Agribusiness
Terminal (TA)
2) To study on improvement of operation and management of the existing
three Sub Agribusiness Terminals (STAs) in East Java Province, North
Sumatra Province and South Sulawesi Province.
(3) Study Areas
1) TA: Lampung Province
2) STA: East Java Province (STA Mantung), North Sumatra Province (STA
Saribudlok Simalungun) and South Sulawesi Province (STA Malino)
(4) Study Crop
Horticulture crops and fresh coconut, coffee and cacao except for rice, meat
and processed foods
(5) Scope of the Study
1) To confirm necessity and validity of the Project and to collect related
information on national level;
a) overview of agricultural policies
b) outline of current agriculture sector
c) current situation and future prospects of supply and demand of
horticultural crops and fresh coconut, coffee and cacao except rice,
meat and processed foods
d) development and rehabilitation of wholesale market
 e) situation of foreign assistance and development plans for wholesale
market by major donor agencies
f) relevant laws and rules on environment and social consideration
2) Feasibility Study (F/S) for TA
2-1. To identify problems and issues to be solved in the Project (TA);
a) Current situation and future prospect of agricultural sector in Lampung
Province
b) current condition of wholesale market facilities in Lampung Province]
c) distribution net-work of horticultural corps and fresh coconut, coffee and
cacao except for rice, meat and processed foods in and around
Lampung Province
d) organization and financial conditions of Lampung Province
e) identification of the problems and issues to be solved
2-2. To formulate a plan for new TA;
a) concept of project formulation
b) design concept and criteria for selection and prioritization of
components
c) natural condition survey (topographical and geologic survey, etc.)
d) environmental and social considerations
e) basic design for facilities
f) procurement for construction work
g) several design options and priorities
h) estimation of investment cost and Operation and Management (O&M)
cost
i) Implementation schedule
2-3. To propose implementation arrangement on the Project and
recommendation for O&M of TA
2-4. To assess project effectiveness and impact on TA (IRR, etc)
2-5.To consolidate the findings and prepare a Feasibility Study Report that
will include market, economic, financial, environmental and social
analyses of the Project together with the basic designs.
3. Study on O&M for three STAs;
a) Current situation and future prospect of horticulture sector including
fresh coconut, coffee and cacao
b) current conditions of operation, management and maintenance of
facilities
 c) distribution net-work of horticultural crops and fresh coconut, coffee and
cacao except for rice, meat and processed foods in and around
d) current situation of O&M including the financial condition
e) identification of the problems and issues to be solved
f) formulation of O&M improvement plan for STAs

2. Objectives of the Project

This survey is the part of the project “Distribution Mechanism Reform through
Development of Wholesale Market (Improving of Post Harvest Handling and
Marketing Facilities)”.
The Objectives of the survey are as follows;
1) To complete Feasibility Study and to make the Master Plan to establish
new (Agribusiness Terminal) TA in Lampung Province.
2) To research to make the improvement plan for those 3 existing STA
(Sub-Agribusiness Terminal) in Jawa Timur, Sumatera Utara and Sulawesi
Selatan Province.
3) To transport the technologies to manage the public markets and to
improve marketing for agricultural products to the counterpart through
corporation of this project.

3. Scope of Work
This Survey covers the following data.
1) To Collect Existing Data
To collect the existent data and surveys related with Agricultural
Marketing.
A) Marketing Flow = Present Marketing Flow of the “Study
Crops” in each province through the targeted STAs with the data
of quantity,, quality, price and payment method of trading. It
includes the following trading record according to the products
flow. In Lampung and the other target provinces it should be
clarified in connection with the existing stakeholders and
marketing flow.
1 Internal flow within target province
2 From target province to Jakarta
3 Inter-provincial trading: Transfer passing thorough the target
province among the outside areas of this target province
 4 International trading
B) Producers = Quantity and amount of the “Study Crops” in the
area to ship to the targeted TA and STAs with seasonal
calendars (cropping pattern) in the “Study Crops” that are
defined in the “Background of the Project” described above. The
following data is also collected on the potential users of the
target TA and STAs.
1 Number of farmers
2 The list of farmers organizations and outlines
3 The list of specialties with quantity and amount with
seasonal calendar (Cropping pattern)
C) Traders = The list of stakeholders of agricultural marketing in
each project site and their outlines with trading quantity and
amount.
D) International Traders = Marketing flow, clients, producers
with the data of quantity and amount, etc.
E) Buyers = The list of the buyers in TA and STAs. Especially
buyers in bulk like big traders, supermarkets, hotels and food
industries.

2) To Make Demand Quantity Survey

The Demand Survey of the “Study Crops” should be made in the
targeted provinces and major consumption areas outside of each target
province.
A) Consumers = The consumption of agricultural products per
capita, especially the “Study Crops”. Data should be provided in
quantity and amount of money.
B) Markets = Number of markets and trading quantity and
amount.
3) To make the Needs Survey of the stakeholders
The needs survey should be conducted to the stakeholders who will be
major users of TA and STAs through interview survey method to identify
the needs of the following stake holders in targeted areas.
A) Farmers and Farmers Organizations
B) Traders
1 Wholesalers
 2 Brokers
3 Middlemen
4 Intermediate dealers
5 Buyers of agricultural products in villages
C) Buyers
1 Supermarkets
2 Hotels
3 Food Industries
4 Small shoppers
D) Consumers
4) Targeted TA and STAs
TA and STAs in the project sites are following;
A) Lampung Province: New Agribusiness Terminal
B) Jawa Timur Province: STA Mantnug
C) Sumatera Utara Province: STA Saribudolok
Simalungun
D) Sulawesi Selatan Province: STA Malino

This survey should include the agricultural products as mentioned “1.(4) Study
Crop” , but if it is possible it will be appreciated to add more products.

4. Qualification of Local Consultants

1) A Project Manager = The one who should be an researcher of agro-
marketing in Indonesia with enough experiences to research not only
about total agricultural marketing system from farmers to Supermarkets
and consumers, especially TA and STA. He also needs to speak and write
English fluently to communicate with Japanese experts. The person who
has the diploma of doctor or master of agro-marketing is preferable
2) A Technical Staff of Post harvest = The one who should be the
expert for the post harvest treatment of agro marketing. He/she needs to
speak English.
3) An Engineer = The one who could offer the technical observations
about facilities and equipments
4) Research Stuffs = Enough staff should be engaged to complete this
survey. Staff is required the knowledge of agricultural marketing with the
ability to communicate in English if possible.
5. Schedule
(1) Proposal submission based upon TOR 14 March, 2011
(2) Negotiation 4 May, 2011
(3) Contract agreement 5 May, 2011
(4) Revision of the Survey Questionnaire 6 May, 2011

(5) Commencement of the Survey by TA and STA 6 May, 2011

(6) Interview Survey by TA and STA 6 May, 2011
(7) Data processing Report 6May -30 May
(8) Preliminary Analysis Report 31 May, 2011
(9) Survey Report Submission 1 June, 2011

6. List of Outputs
1） Collection of the existing data with the list
2） Data processing report of the collected data according to the instruction
by JICA Expert
3） Preliminary Analysis Report
4） Survey Report