Consultant: Feasibility studies on Digitising Kava value chain for trade and investment in the Pacific

The Connectivity Agenda Section, under the Trade, Oceans and Natural Resources Division of the Commonwealth Secretariat are seeking a consultant to contribute to a feasibility study on digitising the kava commodity across the Pacific as a springboard for boosting trade and investment into the industry in specific, and the agricultural and fisheries sector in general.

The study aims to assess the current efforts being made to digitise the kava commodity at national, regional and international levels in the region (if any); assess the need for an agricultural data infrastructure at national, regional and international levels to support the kava industry in the region; assess the potential for interoperability between the various national infrastructures; and explore the interest and willingness of the stakeholders to invest and build such an infrastructure. The output is expected to inform future technical and policy intervention in digitising kava industry in the region by the Commonwealth Secretariat through its support to the Regional Kava Development Strategy being developed by the Pacific Islands Forum Secretariat.

Working closely with the Ministry of Trade, Vanuatu, the Pacific Islands Forum Secretariat (PIFS), Forum Kava Working Groups, Secretariat of the Pacific Community (SPC) on the ground and the Commonwealth Connectivity Agenda team at the Commonwealth Secretariat London, the consultant will undertake a study covering the Commonwealth Pacific on the subject. The study should begin with a literature review and complemented by interviews and focus group discussion on the subject.

Background to the assignment

Kava and its economic importance in the Pacific

Kava crop is a unique shrub distributed in the South Pacific and Northern Pacific region, mostly in Vanuatu, Fiji, Tonga, Samoa, and more recently Solomon Islands and Papua New Guinea. According to the National Quality Standard for Kava Export in Vanuatu, kava is defined by the plant species Piper methysticum Forst. F. consisting of known noble kava varieties and the traditional and ceremonial food beverage obtained by cold water extraction of the plant’s underground parts and basal stumps.

The cultivation and sale of the crop both in domestic markets and as a processed export product is an important source of income for thousands of smallholder farmers and their families across the Pacific. Green liquid, dried and powdered kava has progressed from a traditional and customary beverage over the years to a source of community livelihoods, and now a business for the pharmaceutical industry and social gatherings. The commodity is known to have medicinal capabilities including relaxant. Because of its associated relaxing benefits and the removal of trade restrictions in many countries, the demand for kava has increased and thousands of smallholder farmers across the region are now engaged in kava production. The commodity has become one of the main sources of economic importance to many Pacific Island countries and as a significant contributor to gross domestic product, foreign exchange earnings, and balance of payments through exports for some countries.

The commodity is also reported to have some side effects due to which several countries including the United Kingdom placed restrictions on its import in early 2000. Notwithstanding, there have been a huge demand internationally for the commodity as an anti-anxiety medicine especially in the markets of Australia, New Zealand and America. Countries like Australia have in December 2021 eased their import restrictions while others like United States of America have decided not to ban the processed products. At the same time, the World Health Organisation’s technical review report in 2016 concluded that kava beverage has been consumed in the South Pacific community for more than 2000 years and, there has been little documented evidence of adverse health effects associated with moderate consumption, indicating that if adverse health effects have occurred, the incidence is likely to be low. This growing popularity and demand for kava has resulted in a price hike in recent times. The increasing price has created local and overseas investment opportunities for the cultivation and propagation of kava by local communities across the region.

The kava data gap challenge

Data in general is now being considered one of the most valuable resources of our time. The claim that data is even more valuable than oil in powering the current digital global economy, has meant that data is permeating almost all facets of our lives. According to the World Bank, the challenge of gathering accurate, timely and relevant data is immense across the Pacific islands covering an estimated 640 inhabited islands spread over an area equal to 15 percent of the globe’s surface. The lack of accessible and quality data remains a critical roadblock to the region’s understanding of poverty, welfare, and social developments. Addressing data deficiencies has the potential to drive better policy development and lasting change. For kava in particular, there is significant gap in terms of the lack of reliable and comprehensive data on production, domestic consumption and exports of kava in the region thereby holding back investment and growth prospects for the commercial kava industry.

This lack of data on production, domestic consumption and exports of the commodity makes it difficult to build a strong investment case for private sector involvement or a policy decision for government interventions. The data challenge transcends domestic activities all the way to international trade. Exporting any kind of agricultural product into any developed countries requires certain standards to be met. The unique nature of the kava products with its associated health issues requires stricter requirements in terms of preparation packaging, labelling, and shipping in order to satisfy biosecurity and health regulations and inspection requirements. However, the challenge should be seen more as a “data infrastructural” issue than data itself.

Digitising the kava industry

Digitisation is a component of digitalisation (a process being considered as a game-changer for smallholder agriculture and fisheries transformation). For digitalisation to work for smallholders, a holistic approach that takes into consideration digital innovations consisting of digital solutions/services and digital technologies. However, access to tailored advisory services through digital innovations depends on up-to-date and quality user and content data. This requires a complex data infrastructure in support of the digitisation process and a pre-condition for digitalisation. But the holistic approach also means understanding the entire models of initial financing of digitalisation initiatives, subsequent investments by the private sector investors, the business models behind the delivery of the digital services, and the willingness of users to continually pay for the products and services for sustainability. Finally, “the rules of the game” which define the enabling environment for digitalisation, including digital/non-digital factors and agricultural/non-agricultural factors are key to this holistic approach.

While all the four components are needed for the holistic approach to digitalisation of the sector to work, the focus of this feasibility study is on the agricultural data infrastructure. Agricultural and fisheries content data such as soil maps, agronomic data, weather data, production data, stock data, transport-to-market facilities, market data, data on consumption, are critical for all operations along the value chain. Secondly, for accurate, timely and customised services provision, detailed but secured user data such as data on farmers, fisherfolks, traders, consumers, research networks, extension networks, financial institutions, and cooperatives along the value chain must be maintained. For effective functioning of this resource, there is a need for a sustainable infrastructure to support it just as all other resources. A concerted approach to building and coordinating such an infrastructure could prevent future negative effects on the food and agricultural sector, and on potential environmental degradation.

Objectives

The consultant will:

• Review the literature (detailed literature) on the importance of the Kava commodity, from production to consumption across the Pacific.
• Investigate the efforts being made by the various member states to manage their kava data
• Assess the Kava data gap with stakeholders across the region
• Explore the feasibility of investing and building national data infrastructures to support the commodity
• Produce recommendations on the role of such an infrastructure in boosting Kava trade intra- and inter-region.

Deliverables

• A detailed workplan for the assignment with strategies for delivery and a skeletal outline for the report – 2 weeks after the start of contract
• A full draft report consisting of all the components - 2 months after the start of contract
• A final report incorporating inputs from partners on the ground, the Secretariat, and approval by the Secretariat – 3 months after the start of contract
• A summary PowerPoint slide of the report – 3 months after the start of contract
• A presentation of the report to the stakeholders – 3 months after the start of contract.

Functional Competencies of Consultant

• Demonstrated understanding of issues related to digital agriculture
• Strong analytical and communication skills, including demonstrated ability to synthesize complex information and produce high quality practical advisory reports and knowledge products.
• Ability to work independently and produce high quality outputs in a timely manner, while understanding and anticipating evolving needs.

The successful candidate should ideally possess:

• Individual with degree in ICTs, business administration, economics, agribusiness, fisheries, international development, or firm with a mix of experts in these areas
• 5+ years’ experience in research design, analytics, and policy analysis in low- and middle-income countries
• Experience in carrying out ICTs/digitalisation for development research in the Pacific region is an advantage
• Experience in performing analysis, drafting reports, and producing policy recommendations
• Excellent written and oral communication skills
• Ability to constructively and tactfully engage with senior private sector partners and policymakers to solicit relevant information
• Knowledge of least developed countries (LDC) and small island developing states (SIDS) context is an advantage
• Experience working with government officials and stakeholders from academia, private sector and civil society is an advantage.

Please apply for this contract by submitting a Technical and Commercial proposals to [email protected] by 15 April 2022.

Prices quoted should include VAT but must indicate clearly where VAT is applicable and where items might be zero-rated. Evaluation will be based on both competency and cost. 

Closing date: 17:00 GMT, 15 April 2022