SWITCH Maguindanao: Transforming Coconut MSMEs into Circular, Sustainable and Inclusive Social Enterprises

Job description:

“SWITCH Maguindanao: Transforming Coconut MSMEs into Circular, Sustainable and Inclusive Social Enterprises”

Terms of Reference for the studies

“Financial and market analysis including available alternatives to non-environmentally friendly packaging, building up on the experience of the ongoing EU-funded action implemented by SRC/PRC” And “Design new market strategies for coconut derivatives, identifying features to improve: quality standards, added value, labelling and packaging restyling, advertising”

1. General Background

Co-funded by the European Union (EU), Philippine Red Cross (PRC) and Spanish Red Cross (SRC) are implementing the action “SWITCH Maguindanao: Transforming Coconut MSMEs into Circular, Sustainable and Inclusive Social Enterprises” in Maguinadao. As part of the project´s implementation, the following two studies will be conducted by an external consultant. a) “Op2. A1 Conduct financial and market analysis including available alternatives to non-environmentally friendly packaging, building up on the experience of the ongoing EU-funded action implemented by SRC/PRC”. And b) “Op2.A2 Design new market strategies for coconut derivatives, identifying features to improve: quality standards, added value (i.e. bio/organic and Halal certification), labelling and packaging restyling (including alternatives to plastics packaging), advertising”. The project has started in 2025 and will extend for 42 months until June 2028 in two municipalities of Maguindanao (Datu Odin Sinsuat and Datu Angal Midtimbang), promoting the strengthening of the coconut value chain, working with small coconut farmers and their small and medium-sized enterprises (MSMEs). This initiative improves the sustainability of their production strategies and incomes, strengthens their access to credit and bank financing, and promotes the inclusion of beneficiaries in existing value chains. The project has two specific objectives and four outcomes, involving and strengthening the capacities of civil society actors and local authorities, and generating indirect benefits for more than 300,000 consumers. The gender and equity approach in this project, improves the participation of vulnerable groups, building capacities and promoting the peaceful convenience within the community. With this action, 1,000 coconut producers integrating at least 20 MSMEs will improve their productive sustainability through the identification of weakness and bad practices and the incorporation of new technologies and equipment improving their capacities. To address key segments and stakeholders along the entire value chain. MSMEs, local communities, traders, authorities, and financial entities will collaborate to introduce inclusive green and circular economy practices. A comprehensive strategy for facilitating a green transition and enhancing added-value coconut production will be developed with the producers, addressing climate change, reducing pollution and negative impacts, and promoting sustainable consumption choices. This action contributes to transitioning the Philippines to a low-carbon, resource-efficient, and circular economy, promoting sustainable value chains and products in the coconut industry. Approximately 50 cooperatives and producer associations, both formal and informal, are dedicated to this productive sector in Maguindanao province. Despite the extensive versatility of coconut, which has the potential to integrate full circularity through the production of coco husk, coco coir and coco pit, farmers' limited access to training and equipment result in an inefficient use of resources and waste generation that could otherwise be integrated into the value chain. Regarding the structure of the final report and the deliverables, it is suggested to include at least the following dimensions:

Assessment 1:

● Inception report: Outline of the methodology, detailed work plan, data collection tools, stakeholder engagement strategy, and timeline for the assessment.

● Market and financial analysis (including a comparative model): Analysis of the coconut derivatives market (local and potential external markets), including demand trends, pricing, and competition. The financial component should include cost structures, investment needs, and a comparative financial model assessing current against alternative packaging scenarios. ● Assessment of sustainable packaging alternatives: Evaluation of available alternatives to single use plastics in the local and regional market, including technical feasibility, cost implications, environmental benefits, and potential for reuse systems. ● Consumer insights study: Analysis of consumer preferences, willingness to pay, and behaviour related to sustainable packaging for coconut by-products, based on surveys and/or focus group discussions. ● Feasibility study of circular schemes: Assessment of the viability of circular economy solutions such as take back systems, deposit and return schemes, and collective procurement mechanisms among MSMEs, including operational and financial considerations. ● Recommendations report: Practical and actionable recommendations on transitioning to sustainable packaging, including investment priorities, business models, and potential partnerships.

Assessment 2:

● Inception report: Refined methodology and work plan building on the results of Assessment 1, including stakeholder engagement and validation approach.

● Market strategy report: Development of targeted market strategies for coconut derivatives, including segmentation, positioning, pricing strategies, and identification of high-potential market channels (local and export). ● Branding, packaging, and labelling guidelines (including certification roadmap): Guidelines for product differentiation through improved branding and packaging design, including sustainable packaging options, labelling requirements, and a roadmap for obtaining relevant certifications (e.g. organic, Halal). ● Marketing and promot