Session 3. Henson Danone Grameen Case Study


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  • Contribution is ....RAT The output of this project will be a paper-based rapid assessment tool based on the value chain approach that can be applied to existing or planned projects that aim to improve nutritional outcomes through interventions that focus on agricultural production and related agricultural value chains. The assessment tool will allow designers and implementers of such projects to link agriculture and nutrition goals more effectively through sustainable engagement with the private sector. It will facilitate the assessment and improvement of such projects by a sequence of checklists focusing on (i) the pathways from agricultural interventions to specified nutritional outcomes and (ii) the established with business and markets. This tool will be tested on existing USAID projects incorporated into the Feed the Future program in Kenya and validated on the basis of its ease-of-use and its effectiveness in identifying possible improvements to projects that would enhance their nutrition focus and increase the sustainability of market oriented projects through a agricultural value chains analysis. The rapid assessment tool builds on existing USAID assessments and priorities. Therefore, does not run through all value chain and gender issues. It tries to identify new things arising from nutritious food.
  • Session 3. Henson Danone Grameen Case Study

    1. 1. Spencer Henson (IDS)Delia Grace (ILRI)Building a Framework for Assessingthe Impacts of Efforts to EnhanceAccess to Nutritious Foods Through In-Depth Analysis of the Grameen DanoneFoods Ltd Case
    2. 2. OverviewIntroductionAims of projectStructure of projectGrameen Danone Foods LtdApproach
    3. 3. IntroductionRecognition that ways in which value chains are structuredand operate are critical to ability of the poor to accessnutritious foodRecognised that need to enhance value chain functioningin terms of nutritional outcomes and impacts:– Needs new ways of thinking about how value chainsoperate– Need to ‘join up’ concept of diet and product-basedvalue chainsBeen limited analysis of what strategies work best andwhere in terms of getting value chains to work ‘better’Need to examine efforts to enhance nutritional outcomesand impacts of value chains in a systematic way
    4. 4. Value chains and diet of the poorDietFood 1 Food 2 Food 3 Food 4 Food 5 Food 6 Food 7 Food 8
    5. 5. Overall objectiveDevelop capacity and an analytical approachfor the analysis of value chain-based initiativesaimed at enhancing access and consumptionof nutritious foods by the poor and to use thislearning to develop research proposals onleveraging value chains for nutrition.
    6. 6. AimsDevelop an analytical approach to assessing the efficacyof value chain-based initiatives aimed at enhancing accessand consumption of nutritious foods by the poor.Apply the framework to case of Grameen Danone FoodsLtdDraw general conclusions on the effectiveness of valuechain-based initiatives at achieving sustained consumptionof nutritious food by the poor.Develop skills and approaches for understanding theeffectiveness of value chain-based interventions that canbe employed in a larger and longer-term researchprogramme on value chains for nutritious foods.Develop a proposal for a major research programme intoleveraging value chains for nutritious foods
    7. 7. PartnershipInternational Livestock Research Institute (ILRI)Institute of Development Studies (IDS)BRAC
    8. 8. Grameen Danone Foods LtdSocial enterprise formed in 2006:– Groupe Danone (50%)– Grameen Group/Communities (50%)Danone provided capital of US$500,000 that is fullyrepayableFocused on yogurt-based nutritious foods directed at thepoorProximity-based business modelGAIN provided support on product formulation, socialmarketing and assessment of nutritional efficacy
    9. 9. Grameen Danone - missionOffer a product with a high nutritional valueCreate jobsProtect the environmentTo be economically viable
    10. 10. Grameen Danone - vision“Improve the health of in excess of 1 millionchildren and save the life of 15,000 people.”
    11. 11. Shokti DoiTargeted at children aged 3 to 15 yearsAims to meet 30% of child’s requirement for:– Vitamin A– Iron– ZincNeeds to be consumed at least twice weeklyFortified and probiotic yogurtPackaged in plastic pots providing individual servingsSix day shelf-lifeNow extended into range of products:– Protein enriched– Flavoured– Ambient drinking yogurt
    12. 12. Grameen Danone – performance indicatorsNumber of pots sold and area covered – proxy forconsumptionNumber of days worked per month X number of pots soldper day – proxy for incomeGrameen standards indicators for living conditions
    13. 13. Grameen Danone Foods Ltd – value chainSmallholderProducersLargerProducerProcessing PlantLocal RuralCommunitiesRegional UrbanAreasMetropolitanAreas‘Shokti Ladies’ Village Stores Urban Stores Urban Stores/SupermarketsKiosksChilled StorageFacilities
    14. 14. Analysis of Grameen Danone Foods Ltd to dateLot of interest in Grameen Danone as a:– Social enterprise– BoP enterpriseMost of analysis applied business case perspective:– Business performance– Business strategyPerspectives:– ‘Failed BoP enterprise’– ‘Success waiting to happen’Very limited focus on nutrition:– Work on nutritional efficacy near to completion– No analysis of nutritional outcomes and impacts inpractice
    15. 15. Grameen Danone Foods Ltd – potential nutritional impactsSmallholderProducersLargerProducerProcessing PlantLocal RuralCommunitiesRegional UrbanAreasMetropolitanAreas‘Shokti Ladies’ Village Stores Urban Stores Urban Stores/SupermarketsKiosksChilled StorageFacilities
    16. 16. Assessing the efficacy of Grameen DanoneFoods LtdSustained access to a nutritious food by the poorSustained consumption of the food by target groups atrequired frequencyNutritional outcomes on target groupsEconomic sustainability of the value chain
    17. 17. Initial appraisal of challengesPriceDistributionQuality control and shelf-lifeConsumer perceptions and acceptabilityBasis of consumer demandEconomic sustainability of the business modelTargeting
    18. 18. Pulling the analysis togetherWhat value chain doesor can deliver?What will ‘make’ thepoor use the product‘appropriately’?
    19. 19. ApproachFramework developmentStakeholder interviewsInterviews with consumersQuantitative analysis of consumer choice and nutritionalimpactsFramework revisionDefinition of general conclusionsDefinition of research programme
    20. 20. Conceptual frameworkFocuses on challenges along value chain that mitigateaccess of the poor to acceptable nutritious foodsExamines critical processes within and along the valuechainExamines underlying aspects of value chain functioning:– Abilities– Coordination– IntegrityFocus on strategies through which constraints arealleviated:– Key role of ‘pinch points’– Notion that locus of strategies may not be point atwhich challenge occurs
    21. 21. Key processes in functioning of value chains fornutritious foodsEnhancing andMaintaining NutritionalValueConsumptionCapabilitiesSignallingIntegrityAvailability ValueAffordabilityValue Creation Value Capture
    22. 22. ApproachFramework developmentStakeholder interviewsInterviews with consumersQuantitative analysis of consumer choice and nutritionalimpactsFramework revisionDefinition of general conclusionsDefinition of research programme
    23. 23. Quantitative assessmentIndicators of current consumer behaviour within targetgroups:– Locus of purchase versus consumption– Purchase and consumption behaviourStated choice or revealed preference study:– Factors driving propensity to purchase/consumeDietary/nutritional assessment of product as actuallyconsumed:– Impact on diet diversity– Impact on nutrient intake
    24. 24. Stated choice or revealed preference approach?Approaches:– Stated preference:• Conjoint or other form of choice experiment• Contingent valuation– Revealed preference:• Hedonic pricing• Experimental auctionIssues:– Level and nature of hypothetical bias– Literacy levels of respondents/ability to deal withcomplex survey designs– Distinctiveness of Shokti Doi
    25. 25. Dietary/nutritional assessmentFood frequency questionnaireAnalysis:– Dietary diversity scores?– Nutrient intake?– Anthropometrics?Matched samples of consumers/non-consumers
    26. 26. ‘Joining the dots’Evolution of strategy by Grameen Danone Foods Ltd toaddress value chain constraintsAbility to access target consumersDynamics of consumer behaviourViability of up-scalingInterdependency of distinct target markets and associateddistribution systemsUtility of social enterprise and proximity-based businessmodelsGeneralisable conclusions
    27. 27. ChallengesPolitical sensitivity:– Partners in the initiative– Bangladesh governmentResourcesTimescale
    28. 28. Longer-term research programmeFurther develop and validate the frameworkContribute to wider portfolio of strategies to enhance thenutritional outcomes and impacts of value chainsEnhance knowledge of ‘what works where’Focus on diverse contexts/cases:– Crops and livestock products– Agriculture-to-nutrition / Nutrition-to-agriculture– Geographical coverage– Innovative interventionsUltimate aim is wider learning