Terms of Reference Short Term Consultancy for Feasibility Study of Creating an Artificial Insemination Laboratory I- General Background:

Terms of Reference Short Term Consultancy for Feasibility Study of Creating an Artificial Insemination Laboratory I- General Background: Agriculture is central to the Afghan economy. The sector contributes to more than half of GDP (53%) excluding opium economy and provides employment for two-thirds (67 %) of the labor force. Nearly four out of five Afghans live in rural areas, which also harbor the highest incidence of poverty. Agricultural performance is thus pivotal to overall economic growth and poverty reduction, and offers the only significant prospect for raising farmers incomes. It contributes to food security, provides rural employment, and reduces the vulnerability of resource-poor rural people. Accordingly, development of the agriculture sector is a central pillar of the government s strategy for economic growth, poverty reduction and alternatives to poppy cultivation. In addition to the poppy, the main crops are wheat, rye, corn in the southeast, rice, barley, vegetables and fruits. Afghanistan was an important sub-regional producer of dried fruits and nuts. Breeding is very diverse, including a flock of sheep (meat, fat, wool, leathers) of particular importance for the domestic market and export, but also of cattle whose milk is contributing to food security of much of the population living in remote areas. Alongside these traditional farms, Afghanistan has abundant natural resources that can be exploited by highly specialised farms such as bees, silkworms or freshwater fish. The whole country is conducive to the development of livestock, with varied specific climatic, socio-historical (areas of attachment of pastoralists or agricultural) and economic (urbanisation and consumption centres) conditions. To support the emergence of modern farming sectors, the government relied on a network of state farms, now seen to gradually evolve into so many technical centres and services for professionals, who organise to gradually take over management of all production sectors. The Guzargah centre for cattle artificial insemination, installed in the outskirt of Kabul, is targeted by Animal Husbandry Development Project (AHDP). II- Objective of Project: Based on the achievements of a pilot phase, which fall under the Government's sectorial strategy, the Project will support the professionalization of Afghan main lines. It will contribute to improve food security in rural areas and the main consumption centres in Afghanistan, by reinforcing offer of products with high nutritional quality. III- Specific Objectives of Project: This project through investment, training of technicians and professional structure is designed to strengthen streams of animal products, namely milk. More specifically, will be sought: 1. Making national levels of public centres dedicated to 1

- The genetic improvement of dairy cattle 2. The training of national technicians related to the centres and professional organisations for the production, distribution services and inputs, increasing production and improving marketing of animal products. 3. The professional structuration for the emergence of profitable and sustainable industries. IV- Components of Project: Component 1 - Upgrade Technical level of Artificial Insemination Centre: - Increased semen production capacity to meet domestic needs and - Reorganisation of the infrastructure with a group of sites. - Appropriateness of creating two sub-storage centres and distribution of frozen semen will be studied. Component 2 - Support the delivery of services by the centres - Strengthen and develop the skills of technicians supported by centre, as well as those of producers and managers of their organisations. Answer the demand for rearing techniques services but also various links in the chain, from inputs supply (food, care...) to the disposal of products (marketing organisation, regular supply of consumer markets, contracts of deliveries...). - In parallel, institutional support will be provided to MAIL for defining a national policy on genetic improvement and refocusing on its oversight and support of the industry. Component 3 - Support for the emergence of agricultural cooperatives and professional organisations that support the development of animal production chains The preceding components will equip the centres of technical courses, dynamic and competent service to agricultural organisations in place and creation, mainly cooperatives, to organise and equip themselves in order to (i) ensure the profitability and sustainability aspects, (ii) specialise, for some of them, on specific links (supply, marketing...) and (iii) create wealth in rural and suburban areas. To this end, cooperatives associated with the project will have to prove their strength and have a defined business plan, coherent and realistic. They should be able to liaise between the project activities and their members. The Project will provide the means for: a. Capacity building of organisations: support for the definition of a business plan and the development of their projects, technical training and administrative, technical monitoring and management. b. The grant of specific equipment with high structuring power. V- Artificial Insemination: 1- History of Artificial insemination in Afghanistan: The Artificial Insemination is a public welfare project established and started its functioning in framework of Ministry of Agriculture in 1337 (1958). Then expanded to other provinces like Kandahar, Nangarhar, Balk, Kunduz, Hemand, Baghlan, Samangan, Jawzjan, Laghman, Logar, Parwan, Herat, Ghazni and Paktia Provinces. On that time for insemination of cows the using of fresh semen was common. Due the war situation slowly the program decreased and finally in 1370 (1991) all tools, equipment and bulls disappeared and the project stopped. 2

In 1997, the Food and Agriculture Organization of United Nation (FAO) assistance project restarted the program. In the first year the fresh semen and then in some provinces used the imported frozen semen. In 2005, with the assistance of French Cooperation Office for MAIL a laboratory of artificial insemination established in Guzargha, Kabul. Then from July 2012, the established artificial insemination laboratory supported by Animal Husbandry Development Project (AHDP) through provision of needed materials and tools. The produced frozen semen of this laboratory are distributing in 22 provinces (Kabul, Parwan, Kapisa, Panjshir, Maidan-Wardak, Ghazni, Logar, Paktia, Paktika, Khost, Nangarhar, Kunar, Laghman, Balk, Jawzjan, Faryab, Kandahar, Helmand, Baghlan, Kunduz, Takhar and Badakshan). Based on the existed possibilities the laboratory produced 574,693 doses frozen semen and 489426 doses distributed in the capital and provinces. If we consider the demand of cattle owners in provinces for expansion of the artificial insemination program and accommodate 30% of the total number of cattle per year it needs to produce one million dozen semen per year. Current laboratory (Guzargha Artificial Insemination Laboratory) has the capacity of producing 300,000 dozen per year. The frozen semen of Holstein Freeze breed is available in this laboratory and after proper check can be distributed to trained artificial insemination technicians. 2- The Core Problem and Some Success Cases Some limitations of artificial insemination are as following: a. Spreads some unacceptable genetic characters very fast. b. Needs experienced professional person who has the skill of collection, processing, storage and accommodation of semen and pregnancy of animal. c. Needs specific tools and equipment The achievements of artificial insemination are as following: a. For the first time installation of the frozen semen production equipment in the country. b. Capacity building of more than 150 technicians of government and non-government organizations in artificial insemination and laboratory. c. Expansion of A.I. program from 5 provinces to 22 provinces d. Converting the use of fresh semen system to frozen semen due to existence of new technology. e. Distribution of 574,693 dozen frozen semen in 22 provinces. f. Distribution of 8500 dozen semen of three French breeds (Trantase, Montbeliard and Abundance) as experiment and test. 3. Potentials The advantages of artificial insemination are as following: a. Make possible the proper effective use of bulls b. There is no need for rearing of more bulls and it decreases the cost of feeding, housing and labors. 3

c. Prevent the transferring of sexual diseases in animals. d. Storing of semen for a long time and transportation of it to far distances. e. Preparing of breeding record for proper management of animals farm. f. Isolation of bulls they are infertile or producing unacceptable sperm. g. Insemination of those heated cows they are not allowing the bull for sexual joining. h. Considering the size of animal and decrease the percentage of problems during delivery time. VI- Assignment for the Consultants 1. Overall Objective - The overarching goal of the assignment is: - To assess the needs for institutional building and capacity development; describe, analyze the value chain from a market point of view (analyses the situation and define different scenarios; the advantages, and constraints and profitability of each of scenarios and how to invest on the sector and on what scenarios of breeding sector. 2. Specific objectives- The specific objectives of this assignment are: - To assess the breeds and population of cow in the target province and neighboring provinces. - To assess production trends for milk production and marketing, and the potential for commercial milk collection systems and supply of raw milk of acceptable quality. - To assess market trends for liquid milk and dairy products and the opportunities for raising income for farmers though the establishment of new processing plants and/or supporting existing processing facilities. - To assess the present farm management levels and the options for improvement of milk production per cow though support services (feed and fodder crop production, animal health and artificial insemination services, training and extension on animal husbandry practices). - To assess the needs, interest and constraints amongst the producers for investing in improving milk production and milk quality. - To assess of farming system in the target province and neighboring provinces. - To assess the organizational structures for the commercial and sustainable operation of milk collection, processing and marketing of dairy products (based on cooperative systems and farmers participation). - To assess the trend of fodder crops cultivation and availability of concentrate or needed components of making concentrate locally in the target province and neighboring provinces. - To assess the tendency of farmers for artificial insemination of their heated cows in the target province and neighboring provinces. - To assess other source of getting semen used for AI in this area and also neighboring provinces. - To review the different available options on the breeding sector in the target area (market, shares, ) 4

- To formulate terms of references (TORs) for specific needs in conjunction with establishment of bull center for semen production and Laboratory for semen processing and freezing to be used in artificial insemination, capacity building, needed tools and equipment and to design the minimum requirements in terms of services to help in the all value chain development considering the sustainability in the medium term. 3. Required services: The requested services from the consultants will consist of distinct reports, each related to one of the objective-phases outlined above. Based upon existing literature, interviews, visits and their knowledge the consultants will have to carry out the following activities: a. The market Demand-Side Domestic market analysis: Little information is available on the current status of semen stocks, import and production as well as a defined market demand in Afghanistan. The consultants will investigate the issue of market demand on best possible estimates. Estimates of the domestic market and its prospective evolution will be given based upon: population of cows, diversity of breeds, breeding patterns, typology of farmers, trends in purchasing power etc. b. The market Supply-Side: The existed laboratory in Afghanistan has the capacity of producing 300,000 doses of frozen semen per year, but total demand for semen production in Afghanistan is estimated around 100,000-110,000 probably 1000000 doses (straws) per year. There is no concrete statistical data exist about imported semen straws by different agencies. Artificial insemination processing units and products distribution channels: Based on interviews with stakeholders, a Technique of artificial insemination processing units and distribution channels will be established. Their relations (financial and technical) will be identified. Information will be given by the consultants on the current status (public, private), availability and efficiency of the following services: - Availability of semen for each breed (with public or private technicians); - Veterinary service, - Awareness training for farmers and technicians in artificial insemination. - Cattle feed production: the national availability of feed stuff) for cattle to feed, fodder crops production and their competitively compared to imported feeds will be analyzed; - Prices of imported feeds will be listed by kind of product and compared to national ones; c. Policies, technical assistance and banking information: The sector diagnose will also include an evaluation of the GoA policy framework towards the breeding sector, an outline of current program available as well as an evaluation of their efficiency. Consultants can write some information about artificial insemination business in Balk 5

and the northern provinces of Afghanistan and provide proper advises to the government bodies on the associated devastating problems like: The cattle kept in different ecological regions of Afghanistan show a large variation of phenotypical appearance. They have either small or some of them no humps and show a wide range of colors, mainly black with, some with white spots, brown red, and black and grey. The body weight of the cattle which determines the level of draught performance is also quite variable. The smallest cattle are kept in the areas of the eastern mountains, Hazarajat, Nuristan, Kunar and Badakhshan etc. The average live bodyweight of these cattle is estimated about 150 to 250 Kg. Larger framed cattle are kept around southwest (in Heart, Kandahar and Helmand provinces) and in the northern Afghanistan. Therefore, there are well-known four local/indigenous cattle breeds. They are Kandahari, Kunari, Sistani and Watani. The Kandahari and Kunari breeds are the most numerous and these types of cows are known to be among the best milky/dairy of local cattle in Afghanistan. The cattle are triple purpose animals being used for milk, meat and a draught power. In some places the smallest cattle are calling by different names like Nuristani, Hazaragi, Afghan-Kabuli, Achi, Shanshansuri, Badakhshani and etc. Confusion is often possible as different names are used to refer to the same breed. The comprehensive and detail evaluation of above mentioned local breeds, which includes the genetic characteristic/ proportion of blood of the basic breed, origin, performance, live weight, conformation, progeny test and reproductive capacity is never carried out in Afghanistan. Before the war, exotic cattle were kept at Government dairy farms in Kabul, Jalalabad, Baghlan and Helmand/ Lashkargah provinces and bulls produced on these farms were given to farmers in rural areas for crossbreeding purpose. The government farms were looted during the war and the cattle taken to private farms. Around Kabul, Mazar-e-sharif, Baghlan, Jalalabad and probably some other places artificial insemination was carried out with semen from exotic breeds, and the stations at some provinces are still providing services with fresh semen. Crossbreeding activities were also part of the Paktia Region. The performance potential of these native breeds have a poor growth rate (100 to 150 gram per day), later maturity (age at first calving, 36-40 months) and low milk production (1000 1500 liters in a lactation). The deficiency in milk production is not caused by lack of cattle numbers, but more so by their low level of production. Low productivity is mainly due to incidence of diseases, low genetically potential, low and poor management, inadequate nutrition, low knowledge of the farmers, unorganized breeding, unavailability of sufficient and proper market for dairy products, social unawareness of economic benefits and non-commitment to social change in the society. In any program of improvement they form the care for action. The calving interval is between 15 and 24 months. The milk yield per day of calving interval ranged between one and four liters per day. There are no breed societies which register animals, maintain herd books and ensure purity of breed and its improvement. Most of the cattle breeds that exist today have been evolved one century due to large variation in soil, climate, agricultural practices and trough natural selection mostly for adaptation to agroclimatic conditions, survivability and to a very limited extent these have been selected for milk for draught quality. These breeds have considerable adaptability to local climate, poor nutrition and possess good resistance against certain animal disease and are economically well suited to 6

the areas where they exist (FAO report on the Status and Perspectives of the Animal Genetic Resources Development and Conservation in Islamic Republic of Afghanistan, in 2005). Adult bulls are essentially non-productive and relatively expensive to keep. Therefore, few such cattle are kept by cattle raisers in Afghanistan. Resulting from this lack of available breeding bulls, many Afghan farmers find it difficult to have their cows mated. The extended calving intervals which result have reduced the productivity of individual cows by as much as one half of their lifetime potential. There is a substantial loss of on-farm income from milk and meat as a result. The expansion of artificial insemination service delivery through the privatized paraveterinarians is seen as one of the means of addressing this constraint. 4. Deliverables: 4.1 Report (x) may include: Diagnosis of dynamics, potential and constraints of the Afghan breeding Sector: new artificial insemination laboratory Dynamics and trends analysis for the medium-long term will be provided. The diagnosis will focus on the sector's demand and supply side and, outline the state of current technical assistance program, government policies and linkages with the banking sector. Based on the above, the diagnosis will propose and explain the rational for the choice of a specific sub-sector. Selection of one value-chain: A diagnosis report will be proposed by the consultant including the previous information, as well as an explanation of the rationale for the choice of breeding appropriate procedure. 4.2 Report (y) may demonstrate: Scenarios and recommendations: Based upon analysis of the situation and the diversity of the Afghan breeding sector, the consultant will propose for the chosen breeding subsector, mid-term development scenarios taking into consideration issues such as: - Types and model of farms; - Comparative advantages of the different systems; - Availability of semen from laboratory and bulls for natural mating and the capacity of new laboratory as co- products as substitution of import capacities; - Aggregation model of farm and industry with particular emphasis on privatization of breeding business to make certain sustainability of the sector. Each typology/scenario will have to be completed by a depth socio-economic analysis to show advantages and disadvantages of each in details. For instance: Scenario -1: Continuing the procedure of work based on which FCOMAIL implemented the pilot project and designed the activities of current artificial insemination laboratory as following: 7

- Establish new artificial insemination laboratory (including laboratory building, semen semen processing, freezing and storage equipment, liquid nitrogen facilities, house building for bulls, breeding bulls and other needed tools and materials in the laboratory). - Support the established artificial insemination laboratory through providing needed technical materials, tools and equipment through local procurement and import. - Arrange different capacity building sessions to government and non-government technicians. - Provide technical set of kits to government and non-government technicians. - Supply frozen semen to private and government artificial insemination technicians according to rule and regulation. Advantages of scenario-1: - The MAIL and project technical staff have enough experience of this procedure - The MAIL artificial insemination laboratory is active and providing technical support to the private and public artificial insemination technicians free of charge. - The artificial insemination laboratory is active and providing semen and liquid nitrogen to private and public artificial insemination technicians in subsidize rate. - Number of private technicians will be increased very fast, - During functioning of private and public artificial insemination technicians the services of artificial insemination to farmers will be increased for mating of their heated cows in low price, - The income of artificial insemination technicians will be increased for a period of time, Disadvantages of scenario-1: - Cannot expect competition in the artificial insemination products and services in medium term to act according to the increasing or changing demand of consumers and market for different animal breeds. - By the end of project the MAIL laboratory will be inactive and will not be able to increase the coverage area of activities or will not be able to continue support of existing private and public artificial insemination technicians. - By the end of project the production of laboratory will gradually goes down. - In general cannot expect the sustainability for continuation of production and services at laboratory and technicians levels. Scenario -2: Creation of a branch of stock in the target area: - Increase the production capacity of existed laboratory - Construct a store room and office for the establishment of a branch of stock in the target area. - Procure and install needed equipment and tools for the establishment of a branch of stock in the target area. 8

- Transfer a bunch of needed semen containers as stock to the target area and store there for distribution. - Follows same rule and regulation of laboratory for supplying frozen semen to private and government artificial insemination technicians. Advantages of scenario-2: - The MAIL and project technical staff have enough experience of this procedure - Needs less investment and skill. - Facilitate support of private and public artificial insemination technicians in the target area. - The services of artificial insemination to farmers will be increased. Disadvantages of scenario-3: - Mostly its function, type of services and expansion of target areas related to the situation and products of existed laboratory. - In general cannot expect its sustainability. Scenario -3: Encourage involvement of private sector to run artificial insemination laboratory: - Putting more effort on social work for the establishment of dairy farmer cooperatives and association, - Rearing of bulls by established dairy farmer cooperatives and associations, - Involvement of dairy farmer cooperatives and association in management of laboratory. - Production of standard dilution from local available resources at the laboratory level. - Economic analysis of business, better management and marketing of laboratory and private farms. Advantages of scenario-3: - Through rearing of bulls and management of laboratory by private sector can maintain the sustainability of artificial insemination, - Through preparing of standard dilution locally will decrease the cost of import - Decrease the cost of staff and operation Disadvantages of scenario-3: - The social works are time consuming and it is not possible to establish objective oriented cooperatives or associations in short period of time. - Since this industry is very new in the country therefore, involvement of private sector to take the responsibility for the investment and management of laboratory need too much work and experience. Based on the experience and analysis the consultants have the opportunity to propose others scenarios if explained and justified. Each scenario will give socio-economic analysis given clear 9

proofs of durability and profitability on the medium term (profitability analysis and return and investments analysis. 4.3 Report (z) should reside on: Design of a technical assistance package: In order to overcome main obstacles, the consultant will propose a set of technical assistance measures and ToR. Finally the consultants are required to provide three inter-linked but distinct reports comprising: 1) a diagnostic report, 2) a scenario report and 3) a CB program with related terms of references (ToR). 1) The Diagnostic report will consist of: - A comprehensive description of the breeding sector; - The choice of one breeding subsector and rationale of the choice. 2) The Scenarios report will describe the proposed development paths of the selected subsector and outline potential areas of TA interventions. 3) Lastly, the CB report will compromise the formulation of ToRs for an assistance program and its associated cost estimates. 5. Experts Profile The number of requested experts per category and number of man-days per expert or per category is estimated as follows: Experts Category Man-days Expert 1 Team Leader / artificial insemination specialist Senior 30 Expert 2 Agro-business economics specialist Senior 30 Profile per expert or expertise required: Expert 1: Team leader artificial insemination specialist (Senior) Minimum Requirements of Qualifications and Skills: - A university degree (at least MSc, but PhD level will be preferred) in animal reproduction and genetic sciences or any other relevant field; - Strong managerial and coordination skills; - Excellent analytical, communication and report writing skills; - At least 10 years of continuous experiences in similar environments like Afghanistan, particularly; 10

- Be experienced in the field of agricultural institution strengthening, Expert 2: Agro-business economics specialist (Senior) Qualifications and Skills: - A university degree in Agro-business economics or any other relevant field (MSc levels will be given priority). - Excellent analytical, communication and report writing skills; - Good computer and presentation skills; - Excellent analytical, communication and report writing skills; - At least 5 years of continuous experiences in similar environments like Afghanistan 6. Location and Time Schedule The total duration of the assignment is around 30 days including information review and reporting. Assignment base is Kabul and short travels to some areas (Balk and neighboring provinces in same agro-climatic zone) will happen, if needed. 7. Administrative Information 7.1 Confidentiality: Throughout the duration of the mission, and followed by its completion, the experts will maintain strict confidentiality vis-à-vis third parties with respect to all information gathered and published. 7.2 Other authorized items to foresee under Reimbursable : The budget of the reimbursable costs should include a provision for transport and security. 11