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Bonnie McClafferty, GAIN "Partnerships and Business Models for Delivery of Nutritious Foods to those in Need"
 

Bonnie McClafferty, GAIN "Partnerships and Business Models for Delivery of Nutritious Foods to those in Need"

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Science Forum 2013 (www.scienceforum13.org)

Science Forum 2013 (www.scienceforum13.org)
Breakout Session 6: Science, Technology and Partnerships

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    Bonnie McClafferty, GAIN "Partnerships and Business Models for Delivery of Nutritious Foods to those in Need" Bonnie McClafferty, GAIN "Partnerships and Business Models for Delivery of Nutritious Foods to those in Need" Presentation Transcript

    • BOARD PROGRAM COMMITTEE II/2012 PARTNERSHIPS AND BUSINESS MODELS FOR DELIVERY OF NUTRITIOUS FOODS TO THOSE IN NEED Bonnie McClafferty Director, Agriculture and Nutrition
    • 1 Business models and partnerships • GAIN aims to catalyze market-based approaches that provide access to nutrition for the poor by: • Establishing and proving business models and products that targeting the undernourished; and • Removing barriers to allow consumers and business models to be successful. • "Business model" in this GAIN context refers to a market approach to cover the entire value chain and individual steps may be carried out by private, governmental or NGO partners (or combinations). • In Agriculture, GAIN focuses on models that will deliver affordable diversified diets to the undernourished.
    • Assessment of projects along four criteria GAIN's ambition ...GAIN's ambition ... Create sustainable impact at scale Sustainability Can the business be scaled-up or replicated beyond the reach envisaged within the project? Does the business model survive financially and operationally beyond GAIN's support? Are we able to reach the envisaged number of beneficiaries with this business model? Expansion & replication Scale ... reflected in criteria for project assessment... reflected in criteria for project assessment Delivery model effectiveness Drive continuing impact Develop scalable solutions Demonstrate impact at scale Healtheffectiveness(empirics) Drivescale fromproven impact Demonstrate efficacy Demonstrate effectiveness Do we achieve the desired impact of improving access to affordable diversified diets to the targeted beneficiaries? Impact Sustain, expand and replicate Scale Impact
    • 3 • Where are the undernourished sourcing foods? • How adequate are the foods and for which populations? • Who are the value chain actors? • How can we support business and partnerships to bring more nutritious foods to markets? Understand the context of demand. Innovate within the market.
    • Where are people sourcing foods? Most of the poor in developing countries are net food buyers and over 50% of African farmers are net purchasers of food Markets On Farm Consumption X X X Local Market X X X X Formal Markets X X X X X X X Public Institutions X X X X X X X Inputs into Food Production Food Production Food Storage and home processing Industrial Food Processing Distribution , Transport & Trade Food Retailing, Marketing & Promotion Food Preparation & Catering Agro industry Food Industry
    • Who are the actors along the value chain? Can we align the business incentive for nutrition? Inputs into Food Production Food Production Food Storage and home processing Industrial Food Processing Distribution Transport & Trade Food Retailing, Marketing & Promotion Food Preparation & Catering Activities Seeds, fertilizer, pesticide, irrigation, organic matter, equipment, crop selection Farming practices, (tillage practices, irrigation frequency, cultivation), harvest and post-harvest techniques At or Near the Farm: Home or warehouse storage& processing Industrial: Food storage & manufacturing Bulk packaging and transport to market Point of Purchase Point of Consumption ValueChainActors Crop researchers and agricultural scientists, extension services, Seed companies, fertilizer companies farmer cooperatives, agrochemical and farm machinery companies Farmers, agricultural laborers, cooperative extension services, equipment manufacturers Granaries, warehouses , local millers, crushers, storage container on farm cooling companies, cooperative extension services Processed food manufacturers, industrial mills Importers, exporters, brokers, traders, wholesalers Informal & formal food retailers, restaurant, food service, advertising, media & communications companies Consumers, restaurant, and food service companies
    • BOARD PROGRAM COMMITTEE II/2012 6 Infant food sourcing, feeding, and adequacy in rural Kenya
    • 7 Dietary methods and sample • Sample size: • IYC 6-23 months in Vihiga and Kitui Districts • Interactive 24-hour recall: • Portion sizes estimated using real foods, and weighed on dietary scales • Intakes of composite dishes were disaggregated – based on adjusted household recipes or standard recipes collected in the communities • Food composition table developed using standardized methods and product label information
    • 8 Minimum dietary diversity % children 6-23 mos receiving ≥4 food groups 42,2 60,6 62,8 57,1 6,1 21,9 20,4 16,8 0 10 20 30 40 50 60 70 6-8 mos 9-11 mos 12-23 mos 6-23 mos Vihiga Kitui
    • 9 % Desired Nutrient Density 6-8 mo children
    • 10 % Desired Nutrient Density 9-11 mos month old children
    • 11 ‘Problem’ nutrients Not met with ‘best possible diet’ 6-8 months 9-11 months 12-23 months % RNI %RNI %RNI Vihiga Calcium Iron Zinc 72 26 45 Calcium Iron Zinc 74 37 53 Calcium Iron Zinc 78 68 66 Kitui Iron Zinc 31 69 Iron Zinc 33 68 Iron Zinc B12 66 51 88 Within the upper bounds of foods actually consumed and dietary patterns, it is not possible to meet requirements for these nutrients -An external solution is required
    • 12 Food-based recommendations: 6-8 months Kitui Weekly food-based recommendations (cummulative) # Nutrients req’ts met Fe %RNI Zn %RNI Cost (Ksh/ d) No Recommendations 1 5 18 4.6 Best Possible Diet (B) 9 31 41 20.9 1 7 servings Green leafy vegetables (GLV) 4 9 19 5.7 2 Recommendation 1 + 21 servings Dairy 8 9 21 16.2 3 Recommendation 1 + 2 + 7 servings fortified cereals 8 16 24 16.8 4 Recommendation 1 + 2 + 3 + 7 servings Millet 9 19 25 17.5
    • 13 Focused Ethnographic studies informing feeding and IYC food sourcing practices The FES is the formative research/landscape analysis designed to answer the research questions: a. What are infants and young children 6–23 months of age eating? b. What are the inputs? c. How are caregivers preparing those foods d. Where are they sourcing those foods? e. Why have they chosen those foods
    • 14 The context and sample • Context • 4 rural communities in Vihiga county, Western Kenya; • Poverty and food insecurity is very high despite being in an agriculturally productive area • Subsistent farming mostly on small uneconomical family land • High population density coupled with high dependency ratio • Lack of capital for investment • Sample • 40 caregivers selected on child age, SES and locality • Data collection and analysis • Caregivers were intensively interviewed with FES modules; Modules are interconnected and built from initial 24 hour dietary recall and usual IYC foods as reported by caregivers • Quantitative analysis and text analysis of themes in caregiver narrative responses to open-ended questions
    • 15 “Core” infant and young child foods IYC CORE • PORRIDGE (84%)* [Preferably millet or mixed grain] • TEA WITH MILK & SUGAR (78%) • IRISH POTATOES (34%) • GREEN BANANAS (22%) • RICE (16%) IYC SECONDARY CORE • UGALI (maize meal) (66%) • GREENS (Kale preferred) (66%) • TOMATO SOUP/STEW (With dried sardine) (19%) • BEANS (9%) • FRUITS (34%) • EGGS (9%) *% of children consuming food in the previous 24 hours
    • 16 What are the inputs and where are they sourced? Food/Ingredient Source Own Produce Purchased Core foods Local* Market/Store Millet XX Mixed grain flour XX Maize/maize meal XX X Tea XX Irish potatoes X X Green bananas X X Rice X Milk (cow/goat) X X Kale XX X X Omena X Tomatoes X X XX Onions X X X
    • 17 How are IYC foods being prepared? • Fuel • Firewood (Time spent collecting; Quality of the firewood) • Water (Availability; Time spent fetching; Quality for drinking cooking, cleaning) • Additions to IYC foods • Milk, sugar, margarine/cooking oil, salt • Improve nutritional quality • Improve taste, palatability and acceptability • Modifications to family foods • Thinning, mashing, less spicy & less salty • Storage and food safety • Cooking multiple portions; IYC feeding management
    • 18 Considerations for IYC Feeding : Food availability and access • Chronic and seasonal food insecurity • Heavy reliance on purchased foods (Especially core IYC foods) • Inability to earn income to purchase core IYC foods • Consequences: These work together to produce significant negative changes in quantity and quality of IYC diet. How does she cope? • Reliance on less preferred foods (feeding maize porridge) • Feeding plain maize porridge without milk, sugar, margarine (important for improving nutritional value + child acceptance) • Eliminating some ingredients from stews (oil, tomatoes) • Reducing feeding frequency
    • 19 Considerations for IYC feeding : Food preparation and storage 1. Reliance on salvaged firewood for fuel 2. Water availability 3. Competing time demands (e.g. firewood, water collection, travel to purchase food, income activities) reduce frequency of cooking/child care time 4. Need to save firewood and time leads to unsafe food storage practices 5. Lack of refrigeration contributes to food safety problems
    • 20 Positive features of IYC feeding (Some cultural perspectives) • Many caregivers demonstrated solid nutritional knowledge. (Nutrients, balanced diets etc.) • Caregivers understand the relationship of food quality to child survival and growth. • On a scale of 1 – 5 caregivers rated healthiness of foods 4.9 and child acceptance 4.1 as most important when choosing foods to feed IYC • Caregivers are strongly committed to providing their IYC with the best foods they could afford. • Short-term activities to earn money (gathering firewood, carrying water, engaging in casual labor, selling farm produce and livestock) • Extended family, neighbors and vendors help families with IYC to acquire food when food and financial resources are scarce
    • 21 Innovate with business and partnerships
    • The Marketplace for Nutritious Foods: Strengthening nutritious food business models GAIN GAIN’s Marketplace for Nutritious Foods aims to increase dietary diversity by supporting local innovations that improve access to nutritious foods. The Marketplace is GAIN’s engine for promoting local private- sector investment in nutritious foods. It is being implemented in Kenya, Mozambique and Tanzania. The Marketplace builds a community of public and private sector representatives, including entrepreneurs, company executives, nutritionists, investors, bankers, government officials and researchers.
    • “The Marketplace” At the marketplace nutritious diets begin as an innovative idea Reviewed by a panel of experts from the financial, technical and non-profit sectors And with a healthy diet of funding, technical assistance, business and sustainable investment support, and networking of local enterprises creates the environment Where the idea can transform into a sustainable enterprise that delivers affordable, nutritious foods.
    • 24 Gaps in Knowledge
    • Product/ Distribution/ Marketing Revenue model Product specific target group Typically mostly private value chain Distribution and marketing via corporate retail channels, social marketing often supported by NGOs Government service model Fully commercial model Charity model Typically mostly private value chain Distribution and marketing via corporate retail channels, social marketing often supported by NGOs Hybrid value chain Private distribution and marketing comple- mented by institutional social marketing & sub- sidy system (vouchers) Customer covers costs and margin via selling price Company waives (part of) margin, price covers costs Price subsidized for lower income segments Mainly A and B but also C and D A to E Social objective allows to target lower income segments without profit A to E Subsidies allow to provide products for lower income segments Hybrid value chain Privately manufactured product distributed and marketed through government institutions Full costs covered by government D to E Focus of government typically on poorest income segments Hybrid value chain Privately manufactured product distributed by NGO Full costs covered through donors / charity D to E Focus typically on most vulnerable income segments Subsidized commercial model Social business model Hybrid models, e.g. Five typical business models distinguished
    • Scope of engagement across business cycles: Investment partners will differ Blueprint Startup Maturity Market access to target population Revenues S t a g e s o f e n g a g e m e n t Owner funding/ institutional grants Seed grants / angel finance Venture capital / working capital loans / guarantees Public or private equity / commercial loans Growth (scale up) Koh et al. From Blueprint to Scale: The Case for Philanthropy in Impact Investing