Reducing Mango Losses in Kenya
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The document summarizes a project by XCOM Africa GmbH to reduce mango losses in Kenya. It outlines that 64% of mangos in Kenya are currently lost each year, with 45% of losses occurring in areas the project plans to address like seasonality, harvesting, and transportation. The project's vision is to reduce mango losses by 30,000 tons by setting up a business to process mangos locally and strengthen the value chain in Kenya to sell competitive mango products in domestic and export markets. It provides examples of potential mango products and processing facilities the project could implement.
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Reducing Mango Losses in Kenya
- 1. 22/05/2014 © XCOM Africa GmbH 2014 1 SAVE FOOD Mango Project How the Initiative plans to reduce mango losses in Kenya SAVE FOOD World conference Marc-Peter Zander, Partner & CEO, XCOM Africa GmbH 8th of May 2014
- 2. 22/05/2014 © XCOM Africa GmbH 2014 2 Africa as seen by Europeans Africa has got a bad reputation worldwide driven by prejudices… Source: http://www.graphitti-blog.de
- 3. 22/05/2014 © XCOM Africa GmbH 2014 3 Africa as seen by Europeans Africa has got a bad reputation worldwide driven by prejudices… Source: http://www.graphitti-blog.de
- 4. 22/05/2014 © XCOM Africa GmbH 2014 4 The big opportunity …however Africa offers huge opportunities which are beneath the surface! Source: http://innovation.itu.int/tag/africa/ Opportunity View on Africa
- 5. 22/05/2014 © XCOM Africa GmbH 2014 5 Project outline Our local research concentrated on key areas within the Kenyan mango value chain. Cultivation Processing Sales & Marketing •Growing areas •Varieties •Farmer’s challenges •Logistics •Seasons for cultivation •Product specific technologies •Capacities •Existing key players •Investment needed •Business case •Definition of end product •Sales channels •Pricing •Future trends •USP
- 6. 22/05/2014 © XCOM Africa GmbH 2014 6 Agriculture 61% of the world’s potentially available cropland is in Sub- Saharan Africa. Available cropland in 2013 in millions of hectares Source: Harvard Business Review (2013), XCOM Africa (2013) 590 300 80 2013 Latin America Rest of the world Africa 61%
- 7. 22/05/2014 © XCOM Africa GmbH 2014 7 Mango production worldwide India is by large the biggest producer of mangos worldwide… Source: Kenya Investment Authority (2012) 16337 2551 1784 1633 1314 1189 826 554 India Thailand Pakistan Mexico Indonesia Brazil Philippines Kenya Production of mangos (thousand MT in 2010)
- 8. 22/05/2014 © XCOM Africa GmbH 2014 8 Mango yield opportunity …however Kenya´s mango yield is 153 % higher than India and offers many opportunities for reduction of food loss. Source: Kenya Investment Authority (2012) 6300 8200 10700 9300 9700 15800 4400 16000 India Thailand Pakistan Mexico Indonesia Brazil Philippines Kenya Production of mangos Yield of mangos Yields of mangoes (MT / Ha in 2010) 153 %
- 9. 22/05/2014 © XCOM Africa GmbH 2014 9 0 100.000 200.000 300.000 400.000 500.000 600.000 Mango production Loss of mangos Challenge Approximately 64% of all mangos in Kenya are lost every year. Source: Kenya Investment Authority (2012) Production of mangos by small scale farmer (MT of mangos, 2014) 64 %
- 10. 22/05/2014 © XCOM Africa GmbH 2014 10 Reasons for mango food loss Almost 45% of all mango food loss can be tackled within the SAVE FOOD initiative. Source: Kenya Investment Authority (2012) 100 19 18 2 20 5 36 0 10 20 30 40 50 60 70 80 90 100 Total Loss from seasonality and unattractive varieties Loss from birds, disease and weather Loss due to poor harvest handling Loss from transportation due to overloading and packaging Loss due to overstock Production marketed and sold 45%
- 11. 22/05/2014 © XCOM Africa GmbH 2014 11 THE BIG MANGO OPPORTUNITY Reduce food loss by 30.000 t for mangos in Kenya The big opportunity Reduction of food loss by 30.000 t for mangos. by setting up a profitable business model to process mangos in Kenya and increase the local value chain
- 12. 22/05/2014 © XCOM Africa GmbH 2014 12 Change vision Africa is still in need for simple solutions also recognized by the leaders of Africa. J. Kikwete, President of Tanzania ‘We need to complete the full value added chain‘ … ‘Look at mango for instance … We produce so much of that fruit, export it for processing and at the same time import mango juice. Why can‘t we produce the juice our self and then export it?‘
- 13. 22/05/2014 © XCOM Africa GmbH 2014 13 93 % Domestic market 2 % Export 2013 Mango sales channels Currently approximately 93 % of all mangos are sold as fresh fruits in the local market; only 7 % are exported or processed. Source: Kenya Investment Authority (2012); ICRA, KARI, KENFAB et alteri (2010) XCOM Africa Interviews (2014) 5% Processing •Low quality •Domination of local varieties •High costs for locally grown-exotics •Poor post-harvest handling •High transaction costs for local intermediaries Reasons:
- 14. 22/05/2014 © XCOM Africa GmbH 2014 14 Use strong partnerships within SAVE FOOD to set up local production THE MANGO CHANGE VISION The change vision The vision of the project is to reduce the food loss in the mango supply chain by 30.000 t. and sell competitive products for local and export markets
- 15. 22/05/2014 © XCOM Africa GmbH 2014 15 SAVE FOOD change vision Critical success factor is the exchange of knowledge and experience between local and international partners.
- 16. 22/05/2014 © XCOM Africa GmbH 2014 16 Sales & Marketing Semi-processed mango pulp and purée offer the best chances on the local market; whereas the export markets demand dried mangos. •Changing lifestyles •Rising health consciousness •Convenient portability •Quick and easy snack •Increasing demand for fresh fruits and juice •Price sensitive market •Distrust regarding new products Source: Kenya Investment Authority (2012) Projected mango consumption 2012 - 2017 International demand for new products
- 17. 22/05/2014 © XCOM Africa GmbH 2014 17 Value Chain – Example of mango stripes The difference from a buying price in Kenya to a sales price in Germany is 1233 %. Sources:, www.oanda.com; Mango buying price at farm, GIZ Agribusiness (2010); www.seeberger.com; http://in-euters.com; ww.nieuwoudt-farm.com 0,021 0,021 0,6 0,3 1,69 Sales price farm Production costs Packaging/Logistics Margin Sales price at shop 2,59 € / 100g 0,021 € / 100g 1233 %
- 18. 22/05/2014 © XCOM Africa GmbH 2014 18 Key players in the Kenyan mango market Within the 7% export and processing there are various success stories in the mango sector. “We are far away from saying that we are done. On the contrary, we are keen to extend and diversify our facilities” “Our export business to the Middle East is great. Why should we care about the import regulations in Europe?” “We started in 2010 as a very small company. Today our products can be found in every supermarket and health store in Kenya.” Richard Kimani Rugendo Managing Director of Kevian Kenya Ltd. Isaac Mwangi Director of KEITT Exporters Ltd. Eva Nyawira Director of Azuri Health Ltd.
- 19. 22/05/2014 © XCOM Africa GmbH 2014 19 Sample project outline: Mango pulp / purée Producer Business Groups Manu facturers The implementation of an own processing plant will require an invest- ment of approx. 90.000 EUR and handle 1.000 t of mangos per year. Sorting & Washing Peelingy Heating Slicing BRIX & Acidity Adjustment Pulping Cooling Packaging Storing 2,5 t/ hour fresh mangos 600 kg/ hour pulp/ puree Production Processing Clients
- 20. 22/05/2014 © XCOM Africa GmbH 2014 20 Sample project outline: Dried mango A set-up for dried-mangos will require a professional processing and packaging as well as an excellent sales and marketing concept. Growers Processing, packaging and distribution Local, regional and international markets Source: http://www.innotech- ing.de/de/index.php/tunneltrockner/verfahren
- 21. 22/05/2014 © XCOM Africa GmbH 2014 21 Project steps The 1st mango will be saved beginning of 2015 ! April 2013 2013 May 2014 Sept 2014 2015 Timeline Key activities Today •Conclude investor and partner discussion •Local kick off in Kenya 1st mango saved! •Commitment by more than 25 partners •Project development •Product definittion •Marketing channels
- 22. 22/05/2014 © XCOM Africa GmbH 2014 22 Potential Africa The potential in Africa is enormous… Source: The Economist, 2012
- 23. 22/05/2014 © XCOM Africa GmbH 2014 23 BE PART OF THE MANGO PROJECT Be part of the opportunity
- 24. 22/05/2014 © XCOM Africa GmbH 2014 24 SAVE FOOD Mango Project Come and visit us: INNOVATIONPARC