Joint A4NH/ISPC workshop on nutrition

1. 1
Marketplace for Nutritious 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 malnutrition problem
•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 into Food 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 in the 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 Marketplace for Nutritious Foods
Innovation Accelerator
Community of Practice
Innovative Finance

7. 7
Community of Practice
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 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 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 apply to 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 Marketplace for 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 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. 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 vehicles and 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 for nutrition- 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 Small Grants – 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 for nutrition- 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– Concepts for 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– Concepts for 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.

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Call for nutrition- 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

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A Working Marketplace: 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

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A Working Marketplace: Kenya
With Marketplace support, projected to sell 3,206,250 liters of safe milk to 1,359,450 people through 2016.

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Marketplace for Nutritious 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

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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

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Measuring Success in 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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