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Mc clafferty a4nh-ispc
The document describes the Marketplace for Nutritious Foods initiative, which has four core initiatives to address malnutrition: large-scale food fortification, interventions to improve micronutrient deficiencies, interventions to improve nutrition of children under 2 and pregnant/lactating women, and interventions to improve the nutritional quality of agriculture. It discusses supporting local food businesses through a Community of Practice, Innovation Accelerator grants and technical assistance, and linking businesses to investors. Examples are provided of businesses in Mozambique, Tanzania and Kenya that received support to produce and sell fortified foods and increase access to nutritious options.
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Mc clafferty a4nh-ispc
- 1. 1 Marketplace forNutritious Foods Bonnie McClafferty, Director, Agriculture and Nutrition, GAIN
- 2. Four Core Initiatives Large-scale food fortification Interventions to increase access to adequately fortified staple foods and condiments through sustainable methods Project example: •Developing Ghana’s salt banks for iodized salt production Interventions to improve micro- nutrient deficiencies among young children and other vulnerable groups Project example: •Distributing Sprinkles in Kenya to improve nutrition of infants Interventions to improve the nutritional status of children under 2 and pregnant and lactating women (PLW) Project example: •Supporting women’s groups to produce nutritious foods Interventions to improve nutritional quality of agricultural products through market-based interventions along the agricultural value chain Project example: •Strengthening links between agriculture and nutrition in Kenya Nutritious Foods through Agriculture Multinutrient supplements Tex Nutritious foods for mothers and children Four Core Initiatives Defined to Fulfill Vision
- 3. 3 The malnutritionproblem •Malnutrition remains a serious problem despite decades of attention. •Current efforts are largely therapeutic in nature rather than preventative and are not easily sustained nor do they address the root causes of malnutrition. •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 •To date, few interventions have demonstrated sustainable impact at scale. Markets must play a role. Even farmers are net purchasers of food
- 4. 4 Inputs intoFood Production Food Production Food Storage and Home processing Industrial Food Processing Distribution Transport & Trade Food Retailing, Marketing & Promotion Food Preparation & Catering 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 Private Enterprise Drives Agricultural Value Chains
- 5. Addressing Challenges inthe Marketplace will Help Diversify Diets By addressing these challenges With these solutions Then we can achieve Improved dietary diversity and consump- tion of nutritious foods and demonstrate this impact Limited access to affordable nutritionally diverse diets for BoP consumers Few markets for farmers and SMEs seeking to produce nutritious foods •Invest in models that could go to scale delivering diversified nutritious diets by reducing constraints to produce, store, process, transport and market nutritious foods for urban and rural populations (e.g. Marketplace for Nutritious Foods). •Stronger markets and increased availability of diverse nutritious foods •Increased access to diverse diets •Improved income for farmers producing nutritious foods.
- 6. 6 The Marketplacefor Nutritious Foods Innovation Accelerator Community of Practice Innovative Finance
- 7. 7 Community ofPractice Marketplace Community of Practice Investors & Banks bring business development services & investment capital get investment & business opportunities Research brings technical knowledge gets increased outreach, leveraged outputs Government brings industry knowledge & network gets increased outreach NGOs bring industry knowledge, experience & network get increased outreach Companies & Entrepreneurs bring industry knowledge, participation get links to investment, technical & business planning support
- 8. 8 A Communityof 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 September 2014 Country Membership Convenings Mozambique 70 12 Kenya 90 6 Tanzania 58 4 •Training and seminars •Dialog with Policy •Networking •Communication Platforms for Engagement •Business Mentoring •Investor Interface
- 9. 9 Enterprises applyto the Innovation Accelerator, which provides advanced services to scale their innovative businesses for nutrition impact Innovation Accelerator: Stimulating and surfacing local innovation 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. 10 The Marketplacefor Nutritious Foods Conduct landscape review of: national nutritional needs, actors along value chain, investors, and policy environment Establish a community of practice of locally owned business that will lead the development of nutritious foods markets Support and screen locally developed nutritious food business concepts along the agricultural value chain Provide technical assistance and small grants and links to investors for nutritious food innovations Improve access and availability of nutritious foods to malnourished populations
- 11. 11 Catalyzing Investmentfor 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. 12 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 Investment Vehicles and Partners
- 13. 13 Investment vehiclesand potential partners by country Debt •AgDevCo •Bamboo Finance Mozambique •Banco Terra •GAPI •OikoCredit •BOM •Standard Bank Kenya Tanzania Equity Debt/ Equity •FNSF •FNSF •LGT VP •Acumen Fund •Grassroots Business Fund •FNSF •Grassroots Business Fund •AgDevCo •Bamboo Finance •Root Capital •Equity Bank •EcoBank •NMB •National Bank of Commerce •Root Capital •Equity Bank •EcoBank •K-Rep Bank •Opportunity Bank •Kenya Commercial Bank •OikoCredit •Bamboo Finance •Jacana Partners
- 14. 14 Call fornutrition- enhancing innovations Proposals evaluated Business planning support Grants and technical assistance Investments in a more nutritious agricultural value chain 80 proposals submitted A Working Marketplace: Mozambique 13 innovative concepts received business planning support MIC selected 5 enterprises to receive grants and technical assistance
- 15. 15 Marketplace SmallGrants – Mozambique Funded Enterprise Product Need Value AgroPecuaria de Manica LDA (APM) Soya and maize based high energy protein supplement with added flavorings and vitamins, Manna Meal TA on product formulation and marketing and sales 54K Vegman Vegetable production and marketing company. Wholesale and retail of diverse vegetables in Chimoio, Beira and Tete. Cold storage 110k Vunduzi Investmentos Lda (Vunduzi) Catfish Farm TA marketing and then capital for fish pond development will be considered. 50K Empresa de Comercialização Agricola (ECA) Commercial processor of groundnuts. Will produce peanut butter, ground peanuts, LNS and peanut sprinkles. TA market research, product formulation, Aflatoxin mitigation techniques 150K
- 16. 16 Call fornutrition- enhancing innovations Proposals evaluated Business planning support Grants and technical assistance Investments in a more nutritious agricultural value chain 105 proposals submitted A Working Marketplace: Tanzania 15 proposals selected for site visits and interviews; 9 submitted to TAC 5 concepts received business planning support 1 company receiving grant and technical assistance; 3 others will receive technical assistance
- 17. 17 Tanzania– Conceptsfor TAC Enterprise Product Need Value Mkuza Chicks 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. $100k Power Foods 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) 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 NatureRipe Mango and Cashew based fortified supplementary food. Nutrition TA on formulation, TA for marketing to BoP
- 18. 18 Tanzania– Conceptsfor TAC Enterprise Product Need Value OFA Organic Food Associates Commercial processor of blended flours and complimentary foods. Focus on complimentary foods. TA for market research, business planning, aflotoxin mitigation and fortification Shambani Milk fruit based yogurt and skimmed fresh milk packed in various sizes to suit individual and household package. Business planning TA, yogurt production TA, branding/packaging TA, some equipment. Vonkavy Agro Increasing modern egg production, launch new line of farmed tilapia Capital for expansion of egg production and tilapia. Aquaculture TA.
- 19. 19 Call fornutrition- enhancing innovations Proposals evaluated Business planning support Grants and technical assistance Investments in a more nutritious agricultural value chain 257 proposals submitted A Working Marketplace: Kenya 20 proposals selected for site visits and interviews; 20 submitted to TAC 6 companies selected for business planning support MIC selected 3 business plans for grants and technical assistance
- 20. 20 Marketplace Grants– Kenya Examples Enterprise Product Need Estimated value Annico Enterprises Amaranth-based products Equipment and TA in out grower management 221K ThinQubator Aquaculture Consultants Nile Tilapia and catfish fingerlings Increase breeder stock and out grower ponds and TA for financial management, marketing, and other business needs 100k Maziwa King Pasturized milk from dispensing machines. Coin operated Cold chain management and additional machines and TA for financial management, marketing, and other business needs 150k Chicken Choice Chicken parts at low prices Refrigeration truck, coop feeders and drinking machines and TA for financial management, marketing, and other business needs 100K
- 21. 21 A WorkingMarketplace: Kenya Chicken Choice •Sells chicken and offal in small, affordable quantities •Makes chicken products more accessible to a large segment of consumers •Operates 10 retail outlets and 2 farms •Most urgent need: refrigerated truck to supply its outlets •With Marketplace support, projected to sell chicken products to 775,000 people by 2016
- 22. 22 A WorkingMarketplace: Kenya With Marketplace support, projected to sell 3,206,250 liters of safe milk to 1,359,450 people through 2016.
- 23. 23 Marketplace forNutritious Foods Logic Model Increased consumption of nutritious foods Increased availability of nutritious foods Increased affordability of nutritious foods Increased consumer demand for micronutrient- rich foods Improved nutritional status Increased purchase of more nutritious foods Improved capacity of businesses to produce, store, process, transport and market nutritious foods Activities/Outputs Outcomes Impacts Improved income for business stakeholders (workers and farmers) participating in value chains Community of Practice – events, newsletter, virtual connections Innovation Accelerator – business planning, financial grants, technical assistance Increased marketing of nutritious products Reduced costs of nutritious foods Increased production of more nutritious foods Increased nutritional quality of foods Awardees equipped with viable business plan Increased financial investment in businesses producing nutritious foods Networks for businesses, investors and institutions associated with nutrition-sensitive agricultural value chains Awardees equipped with technical assistance
- 24. 24 Performance measurement Key indicators for measuring progress: Business performance among businesses supported by Marketplace: •Growth revenue: the amount of monetary value generated from normal business activities •Amount of external funds invested in business supported by Marketplace: External private funds include investments by the business itself for its own operations •Number of Micro, Small or Medium size producers/suppliers with less than 100 employees that Accelerator Awardees source production inputs Production/sales of nutritious foods: •Estimated number of individuals consuming nutritious foods produced/sold by businesses supported by Marketplace •Cost per 100 grams of food product
- 25. 25 Measuring Successin Nutrition: Case study approach Key indicators for measuring nutrition outcomes: Populations living in the geographic boundaries of the market area of a food product supported by Marketplace: •Intake of the food product by women of reproductive age, girls, and children (contribution to nutrient adequacy of the diet) •Women of reproductive age dietary diversity •Children 6-23 months with minimum dietary diversity Populations living in households supplying food inputs (e.g. farming households) or labor to the businesses supported by Marketplace: •Women of reproductive age dietary diversity •Children 6-23 months with minimum dietary diversity •Household dietary diversity (HDDS) •Household hunger as measured by the Household Hunger Scale (HHS)
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