Bonnie McClafferty, Director, Agriculture and Nutrition, Global Alliance for Improved Nutrition (GAIN), at the side event, "Global Panel on Agriculture and Food Systems for Nutrition: Resilient Policies for Nutritional Security." IFPRI 2020 conference on Building Resilience for Food and Nutrition Security, May 15-17, 2014, Addis Ababa, Ethiopia.

1. Investing in the middle of the
chain to diversify diets
Bonnie McClafferty
Director, Agriculture and Nutrition, Global Alliance for
Improved Nutrition (GAIN)
W gainhealth.org T @GAINalliance

2. The malnutrition problem
• Malnutrition remains a serious problem
despite decades of attention.
• While the quantity of food available
remains an issue, the nutritional quality
of food eaten is widely missing. The poor
eat largely staples but diverse quality
diets are essential
• Current efforts are largely therapeutic in
nature rather than preventative and are
not easily sustained nor do they address
the root causes of malnutrition, an
inadequate food system.
• To date, few public nutrition interventions
have demonstrated sustainable impact at
scale. Markets must play a role. Even
farmers are net purchasers of food
W gainhealth.org T @GAINalliance

3. Between 40-51 nutrients
Photo credit: Hungry Planet: What the world eats. 2006
W gainhealth.org T @GAINalliance

4. Mapping sources of food for the undernourished:
Foods move within a system
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
“Value-chain concepts offer considerable potential for enhancing efforts to improve
nutrition, and they provide a framework within which opportunities for leveraging
agriculture for nutrition can be identified and implemented” – IFPRI (2012)
Traditional Food based
intervention focus areas
W gainhealth.org T @GAINalliance

5. Mapping sources of food for the undernourished
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
“Value-chain concepts offer considerable potential for enhancing efforts to improve
nutrition, and they provide a framework within which opportunities for leveraging
agriculture for nutrition can be identified and implemented” – IFPRI (2012)
Traditional Food based
intervention focus areas

6. Private Enterprise Drive Agricultural
Value Chains
Seeds, fertilizer,
pesticide, irrigation,
equipment, crop
selection
Farming practices,
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
Farmers ,
fertilizers, diverse
horticultural seeds,
biofortification
Storage and
handling at the farm
gate. Prevention of
loss and food safety
Commodity
storage to reduce
degradation
Reduced milling
& polishing time
Cold chain &
storage systems
Fortification
Reduced milling
& polishing time
Nutrition-sensitive
bulk packaging &
transport (e.g.
cold chain,
storage systems)
Nutrition-sensitive
retail packaging &
branding
Promoting
importance of
good nutrition
Promoting
importance of good
nutrition. At home
fortification
Inputs into
Food
Production
Food
Production
Food
Storage
and Home
processing
Industrial
Food
Processing
Distribution
Transport &
Trade
Food
Retailing,
Marketing &
Promotion
Food
Preparation
& Catering

7. The Marketplace for Nutritious Foods
W gainhealth.org T @GAINalliance
Business planning support.
Grants and Technical
assistance
Training and information
access
Access to investors

8. Marketplace for Nutritious Foods: A
Community of Practice of Local Enterprises
“The Community of Practice gives us the
opportunity to learn more about how to
improve and make our business
grow. This initiative is very important for
us because by participating in its
convenings, we learn about new
approaches to position our product. We
are learning more about nutrition and its
importance and how we can contribute to
improve the nutrition of Mozambicans.”
Octávio Muchanga, Managing Director,
Xikhaba, Mozambique
As of December 2013
Country Membership Convenings
Mozambique 70 8
Kenya 100 6
Tanzania 109 2
• Training and
seminars
• Dialog with Policy
• Networking
• Communication
Platforms for
Engagement
• Business Mentoring
• Investor Interface
W gainhealth.org T @GAINalliance

9. Innovation Accelerator:
Stimulating and surfacing local innovation
Enterprises apply to the Innovation Accelerator, which provides advanced services to
scale their innovative businesses for nutrition impact
Enterprises from
the Community
of Practice,
apply to the
Innovation
Accelerator
Decision/action points
Technical Advisory Committee at the
Secretariat reviews applications;
prepares an assessment report &
ranking to award business planning.
External investors
assess enterprises and
make investments via
Loans, Equity,
Guarantees etc.
Investment Committee at Geneva
reviews the awarded business
plans to provide de-risking grant
(financial + technical assistance).
Concept review Business planning Investment and leverage
Technical Advisory
Committee assessment:
• Nutrition contribution
• Business viability
• Agricultural product
feasibility
• Legal & ethical
compliance
Specialized
technical support to
selected high
impact Ag-Nut
enterprises in
business planning,
capacity building,
policy support.
De-risking
grant and
external
investor
interface.
Business and
nutrition
delivery scale
up via
investments
2 cycles
per year

10. Marketplace Small Grants – Mozambique,
Tanzania, Kenya
Enterprise Product Need
Vegman (Moz) Vegetable production and marketing company.
Wholesale and retail of diverse vegetables in
Chimoio, Beira and Tete.
Cold storage
Mkuza Chicks (Moz) Poultry processing, eggs, day old chicks. Innovation:
Micro retail outlets in low-income settlements.
Offering affordably packaged products.
Business planning TA and
distribution, marketing and sales,
possible capital.
Power Foods (TZ) Commercial processor of blended flours and
complimentary foods. Focus on complimentary foods.
TA for market research, code
compliant marketing and
distribution to BoP
Morogoro Centre for Food
Processing Training and
Consultancy Services
(MCFPTCS) (TZ)
Extruded amaranth and orange-fleshed sweet
potatoes based dry vegetable soup/comp/sup food.
Some capital equipment, nutrition
TA on formulation, code compliant
marketing and distribution to BoP
ThinQubator Aquaculture
Consultants (Kenya)
Nile Tilapia and catfish fingerlings Increase breeder stock and out
grower ponds. TA for financial
management, and marketing
Maziwa King (Kenya) Pasturized milk from dispensing machines. Coin
operated
Cold chain management and
additional machines. TA for financial
management and marketing
Chicken Choice (Kenya) Chicken parts at low prices Refrigeration truck, coop feeders
and drinking machines. TA

11. Catalyzing Investment for Local Nutritious
Food Enterprises
Support incubated and investment-ready businesses in accessing capital through:
• Links to local banks, angel investors, venture capital funds, and other business
partnerships and investors
• Existing GAIN partnerships and potential new investment funds, such as:
• Root Capital
• IFC
• GAIN Food and Nutrition Security Fund
• GAIN-created funds under development:
• Nutrition Credit Facility
• Food and Nutrition Security Fund

12. Investment Vehicles and Partners
GAIN – IFC Nutrition
Trust Fund
LGT Venture
Philanthropy
Description
• Grants to incentivize private sector companies
to tap market opportunities for nutritious foods
for low-income consumers; IFC provides
investment capital
• Grants, debt and equity to businesses that are
meeting a broad range of nutrition needs
Root Capital
Innovation Fund
• General Mills and Rockefeller Foundation are
partners in a wide variety of nutrition initiatives
through loans to organizations in Africa and
Latin America
Investment size (USD)
2 million +
250,000
– 2 million
50,000
– 500,000
Other investment
institutions (if needed)
• Provide capital to companies/projects where
current partners are not present or do not have
appetite (e.g., IADB – Ancalmo in El Salvador;
Bio – PKL in Cote d’Ivoire; Fanisi, Pearl Capital,
Soros)
500,000
– 5,000,000
Food and Nutrition
Security Fund
• Debt and equity to support GAIN-led projects
throughout global network
500,000 –
5,000,000
Nutrition Credit Facility
• Short-term debt to private companies looking
to invest in nutritional quality of operations
10,000 –
500,000
In development
W gainhealth.org T @GAINalliance