Scope of Work/Términos de Referencia

 

Description: Floral Traceability and SD/SI Stakeholder Outreach

Name of Consultant:

Project & Task: To conduct external stakeholder outreach & training for floral traceability system & requirements, SD/SI, and royalty.

 

Rainforest Alliance Contact – Jake Davignon, jdavignon@ra.org, +1(802)923-3757

 

(This report could be filled out in English or Spanish)

a)           Background / Antecedentes:

The Rainforest Alliance has introduced a full traceability system, and accompanying Supply Chain Standard requirements for the Floral Sector. This went into effect on July 1, 2021.

Alongside the traceability requirements is the introduction of a volume-based royalty payment, charged once in the supply Chain for Certified floral volumes. External stakeholder outreach, and Sector research are needed to determine the royalty amount ($USD/volume), where to be charged in the supply Chain, and volume unit to be used.

 

A third set of requirements that will be introduced in the flower sector from 2023 onwards are the criterium related to Shared Responsibility: Sustainability Differential and Sustainability Investments (SD/SI). Flowers, like most of the other perishables, is a sector where the payment of any type of premium is currently not a common practice. Therefore, the introduction of these concepts requires a design that is appropriate for the sector and fits the logic supply chain, to ensure we achieve the desired outcomes and create a positive impact. Therefore, also for this topic sector specific guidance must be developed, through a process of internal and external consultation. Once the floral guidelines have been designed and approved by the LT, a training package and roll-out process must be put into place.

 

b)           Goal of this consultancy/Meta de esta consultoría:

At the end of this consultancy a fully designed and comprehensive roll-out plan is in place  for flowers related to royalty and shared responsibility..

 

 

c)   Objectives/Objetivos:

 

1.    Royalty plan has been designed and approved by the LT (including pricing sensitivity analysis, royalty amount, point of charge, implementation timeline)

2.    Guidance document and roll-out plan for SD/SI has been designed and approved for flowers and industry and stakeholders have been fully onboarded in the new standard.

 

c)           Tasks/ Tareas:

 

1.    Royalty

a.            Conduct desktop analysis on market pricing alongside RA flower volumes and varieties

b.            Consult with the Floral Sector on the price sensitivity of the product and gain an understanding of margins and average pricing along the value chain.

c.            Run a revenue model with different pricing and volume scenarios, and potential revenue and risks for RA

d.            Propose charging mechanism and point of charge for the royalty

e.            Prepare presentation for LT approval and signoff of the royalty proposal

f.             Lay out a royalty roll-out plan with detailed timescales and communication steps

g.            Help prepare and launch royalty communication to industry and stakeholders

h.            Assist on roll out if timing available

 

2.    SD/SI

a.            Develop SD/SI guidelines for the floral sector through internal and external consultation

b.           Develop training materials and a roll-out plan for SD/SI implementation at all levels of the supply chain where this is applicable,

 

 

d)           Deliverables/Productos requeridos: 

 

 

1.    Floral Supply Chain Mapping – emphasis on USA and European consuming market

2.    Reports which summarized the main findings of the consultation processes about the 2 key topics of the consultancy (royalty and SD/SI)

3.    Templates with pricing information and sensitivity analysis of the royalty implementation

4.    Presentation and roll out plan for the Royalty delivered and agreed by the LT

5.    Royalty and SD/SI Training materials and Roll out plans for royalty and SD/SI implementation

 

 

e)           Level of effort/Nivel de Esfuerzo y Contratación:

 

 

 

e)           Requirements / Requerimientos

 

·        Spanish and English language fluency written and oral

·        Floral Sector Experience, both at farm as well as supply chain level

·        Experience in sustainability and traceability in the flora sector


· Industry outreach should  focus on the entire supply chain - farm, first buyers, importers, other buyers (up to the brand/retail owner)

and CB level

TIMELINES FOR COMPLETION

 

 

November 2021 -February 2022 – Royalty

 

March – April 2022 – SD/SI

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