Tuesday, 09 October 2018 07:42

Beef Production, Marketing and export in the Sarah Baartman region

Project Name: Beef Production, Marketing and export in the Sarah Baartman region
Requestor: Cacadu District Development Agency
QUOTATION NO. 1/2017-18
NOTICE NO. 2 of 2018
Site Clarification Meeting (Compulsory): None
Quotation to be Delivered by: 15 October 2018

SPECIFICATION OF ORDER

The objective of the business plan is intended to review the business opportunity for SBDM beef industrial to export to China, by understand the value chain eventually develop a business model and implementing plan to guide the CDA assist the local economic-social beneficiation by facilitate the local beef export to China business. The following objectives and outcomes are envisaged for the study:

1.1 Review the feasibility and potential of Sarah Baartman Beef export to China The review is based on the comprehensive understanding of the Beef Industry Profile of South African and SBDM region. The review shall include but not limited to the following: 1.1.1 A situation analysis of the SA Beef Industry

a) Assess the current commercial production trends

b) Profile existing state funded and/or supported primary beef production projects, as well as secondary production (abattoir, deboning and feedlot) projects

c) Conduct interviews with commercial producers as well as government department representatives to gain insight into sub-sector trends and production dynamics

d) Prepare a qualitative and quantitative beef production profile

1.1.2 A comparison situation analysis of the Sarah Baartman beef industry

a) Assess the current commercial production trends

b) Profile existing state funded and/or supported primary beef production projects, as well as secondary production (abattoir, deboning and feedlot) projects

c) Conduct interviews with commercial producers as well as government department representatives to gain insight into sub-sector trends and production dynamics

d) Prepare a qualitative and quantitative beef production profile

1.1.3 Define the demand for imported beef in China

a) Obtain insight into the demand dynamics of beef within China

b) Understand the product-specific demand for beef

c) Understand the expectations of the end-user (licensed importer)

d) Understand the dynamics of the BRICKS agreements and MOU/agreements signed between RSA and China on the export of beef products

1.1.4 Evaluate the potential for beef production along the value chain

a) Quantify the current market gap within the industry

b) Understand the apatite of commercial farmers to increase production within the short-medium term to meet additional demand

c) Engage with commercial operators of abattoirs and feedlots to ascertain their interest in forming commercial partnerships

d) Identify emerging farmer project opportunities, and collaboration initiatives for support, with the idea of equipping co-operatives and small-scale producers to participate in the industry

e) Earmark key government assets/incentives that can be utilized by emerging farmers to operate within the production value chain

f) Conduct basic assessments on identified land and facilities to understand the investment/development requirements needed

g) STEP & SWOP analysis (if applicable)

1.2 Develop a consolidated business plan

1.2.1 Develop a production schedule for consideration, allocating production splits across identified commercial and state-owned (community) farms

1.2.2 Prepare a production timeline showing the move towards production maturity as emerging farer participation increases overtime

1.2.3 Develop a collaboration model that can be implemented between commercial farmers and emerging farmers

1.2.4 Develop a collaboration model can be implemented on the value chain in South Africa, which include CDA, Export company, Abattoirs, Debone facility, feedlots and farmers

1.2.5 Develop a profit and risk share model between the partners along the value chain

1.2.6 Develop a supply chain financing model to enable the emerging farmers participation

1.2.7 Identify potential feedlots for partnership, expansion or development (quantifying output per facility)

1.2.8 Identify potential abattoirs for partnership, expansion or development(quantifying output per facility)

1.2.9 Prepare a logistics plan, specifying the linkages based on Port Elizabeth export company (i.e. integrated management plan for the entire system

1.2.10 Define and package the role of the export company

1.2.11 Define and package the role of CDA

1.2.12 Evaluate the direct and indirect local economic-social benefit of the business model, quantify the potential job creation

1.2.13 Prepare financial analysis

a) Develop a financial production model considering both the capital expenditure requirements and annual operation costs along the value chain

b) Ensure the model allows for a sensitivity analysis

c) Quantify the profit-share split across partners in the programme

1.2.14 Risk analysis

a) Understand the full risk profile of the programme

b) Provide mitigation suggestions to minimize extreme and long-term risk for all parties

c) Suggest a quantified the risk-share pricing structure across partners in the programme

1.3 Develop a Implementation Plan for CDA

1.3.1 Identify all the key stakeholders and participants in the process, defining their commitments, responsibilities and functions (private & Public sectors)

1.3.2 Specifically define the roles and responsibilities of CDA as a programme facilitator

1.3.3 Provide a key work breakdown proposal with proposed timeframe

2 Expected Deliverables of the Business Plan

2.1 Comprehensive Beef Industry Profile

2.2 Business plan

2.3 Implementation Plan

Evaluation

The quotation will be evaluated in terms of 80/20 preference points system as well as functionality. Functionality will be assessed as follows:

Criteria Weight Value 1 - 5 Score Experience of the company in the agricultural or related industry 20 Max 5 100 Expertise and Qualifications of project team assigned to the project 15 Max 5 75 Ability to conclude study within 6 weeks 10 Max 5 50 TOTAL 45 (TW) 225 (MPS) Where: 1 = Poor; 2 = Fair; 3 = Good; 4 = very good; 5 = Excellent

Failure to meet 70% on functionality will result in quote being non-responsive.

Experience of the company in the agricultural or related industry

Past experience in the agricultural industry focusing on beef production and value chain. List of previous or similar projects completed in the past five years with contactable references must be attached. Expertise and Qualifications of Project team assigned Proven knowledge and experience in the agricultural industry and beef production, but not limited to the following areas is considered to be essential (Proof documentation must be provided):

• Work experience in the agricultural industry (marketing, economics, production, and logistics).

• Knowledge about Sarah Baartman District

Ability to conclude the study within six weeks

A service provider must demonstrate the ability to conclude and submit the final report within the specified time frame. A project plan with time frames must be submitted.

1. General

• All prices shall be inclusive of Value Added Tax (VAT).

• The CDA reserves the right to accept or reject the quote.

• Quotations to be valid for 60 days from closing date

• Service providers who submitted a quotation before need not to submit again.

All relevant information must accompany all quotations submitted. No late or incomplete quotation will be accepted for consideration.

The CDA reserves the right not to accept the lowest or any quotation and no reason to the acceptance or rejection of quotation will be furnished.

It should be noted that failing to attach the B-BBEE Status Level Certificate will result in the 20 preference points not being awarded.

Formal written price quotations should be submitted in a sealed envelope, clearly marked NOTICE NO: 2/2018 and QUOTE NO: 01/2017-18 (BEEF PRODUCTION, MARKETING AND EXPORT IN THE SARAH BAARTMAN REGION) which must be placed in the quotation box, 4th floor, Standard Bank Building, Govan Mbeki Avenue, Port Elizabeth, before 12pm on 15 October 2018.

Quotes may also be submitted by means of an email: This email address is being protected from spambots. You need JavaScript enabled to view it. before 12pm on the 15 October 2018.

For further enquiries related to the Request for Quotations, please contact the Mr N Lombard on (082) 329 4545 / E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

All suppliers are required to register on the Central Supplier Database (CSD), as well as submit a separate Declaration of Interest form (downloadable from the Sarah Baartman District Municipality’s website; www.sarahbaartman.co.za). Information on the CSD is available on the CSD website: www.csd.gov.za. Should you have any enquiries please contact the Supply Chain Management Unit; Khaya Fana at (041) 508 7149. No late or incomplete quotations will be considered. The only or lowest quotation submitted shall not necessarily be accepted.

Additional Info

  • Briefing Session: Yes
  • Briefing Session Compulsory: Yes
  • Tender Closing Date: Monday, 15 October 2018
  • Tender Closing Time: 12:00
  • Tender Document Box Location: 4th floor, Standard Bank Building, Govan Mbeki Avenue, Port Elizabeth

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