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International Food Aid Conference

International Food Aid Conference. Supporting the Zambian Food Industry to Develop Specialized Food Products Fred Grant Practice Manager, Nutrition and Health Land O ’ Lakes International Development April 7, 2009. Land O’Lakes International Development. Background

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International Food Aid Conference

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  1. International Food Aid Conference Supporting the Zambian Food Industry to Develop Specialized Food Products Fred Grant Practice Manager, Nutrition and Health Land O’Lakes International Development April 7, 2009

  2. Land O’Lakes International Development Background • Created in 1980 as a division of Land O’Lakes, Inc. • Transfer know-how and skills Experience • 150 projects in over 70 developing and transitional countries • Work in agriculture, livelihoods, nutrition, and food systems Resources • Funding from USAID, PEPFAR, USDA and MCC • Work with multiple implementing partners

  3. Land O’LakesZambia • Title II/C-FAARM: Dairy and livestock, cooperative and business development • Title II/Dairy Development: Dairy development, organizing producer groups, dairy processing, quality assurance • PROFIT: Zambia Dairy Industry Development Program facilitating business services, processing standards, transport, quality assurance, and market services across the dairy value chain

  4. Overview of Food Product Development in Zambia • Since 2006, 3 Zambian food processors have been supported to develop and commercialize nutrient-enriched foods that are already familiar to Zambian markets and diets • Goal: Increase availability and variety of high–quality, nutrient-dense foods for vulnerable groups produced by the Zambian food industry on a commercially sustainable basis

  5. Partners • Food Manufacturers: Sunrise, Trade Kings, Parmalat-Zambia; Product development costs and marketing are entirely funded by the Zambian processors • Community Organizations: Network of Zambians Living with HIV/AIDS, Church Health Association of Zambia • NGOs • Health Facilities: Luanshya Mines Hospital • Government: National Food and Nutrition Commission, Zambia Bureau of Standards, Zambia Food and Drug Authority, National Institute for Industrial and Scientific Research • Donors: USAID, PEPFAR

  6. Rationale • Dietary diversity is important but not always available or affordable. Fortified, processed foods can be a source of micro/macro-nutrients • Opportunity for food industry to contribute to the nutrition requirements of their consumers • Adjustments to the formulation of commercially prepared foods can improve their contribution to nutritional needs of consumers and vulnerable groups for little increase in cost • Adapting commercially viable foods is a sustainable approach to increasing the availability of specialized foods for vulnerable groups because of existing market demand from consumers and returns to processors

  7. 1 FOOD ASSISTANCE CHANNEL HUMANITARIAN Forward Contracts Aggregated Demand 2 RETAIL CHANNEL ZAMBIAN HOUSEHOLDS ZAMBIAN FOOD PROCESSORS 3 INSTITUTIONAL CHANNEL HEALTH FACILITIES, WORK, SCHOOLS, MILITARY Forward Contracts Aggregated Demand Business Model

  8. Process 1 Stakeholders Workshop • Identify vulnerable groups and their nutritional needs • Food and nutrition gaps • Product design criteria • Government, NGOs, UN, USAID, HIV associations Selection of Processors • Produce ready-to-eat products • Progressive management • Strong quality control • Willing to invest: ingredients, pilot runs, packaging (no additional equipment purchases required) • Business planning

  9. Process 2 Product Development • Market analysis • Product formulation • Pilot production runs • Field validation: acceptability, packaging, storage, shelf life • Lab testing: regulatory compliance, sampling • Packaging/branding Product Launch • Marketing: 3 channels

  10. Product Design Considerations 1 Vulnerable Groups • Nutritional needs of people living with HIV (PLHIV) and nutritional management of HIV/AIDS: • PLHIV require greater energy intake (10-100%) which should be met by a diverse diet • Lack of appetite, oral thrush, and diarrhea further exacerbate food consumption and metabolism • Zambia Nutrition Guidelines for the Care and Support of People Living with HIV/AIDS (2004) Consumers • Zambian dietary practices and preferences • Consumer expectations for price, packaging, and taste

  11. Product Design Considerations 2 Manufacturing Standards • National food standards: Food and Drug Authority; Bureau of Standards • Formulation, processing, and packaging based on international principles of food and nutrition science, quality control, and Good Manufacturing Practices Institutional Requirements • Compatible with the operations and logistics of NGOs and their local partners that provide nutritional supplementation to people living with HIV

  12. Food Products

  13. Nutritional Benefits - Biscuit

  14. Nutritional Benefits - Maheu

  15. Nutritional Benefits - Mabisi

  16. Commercial Benefits

  17. Advantages of Supporting the Local Food Industry 1 Strengthened Local Industry • Demand for local ingredients and distribution channels • Processor technical expertise is increased and can be leveraged for future product innovation • Processors make capital equipment investments in response to market demand increasing long term food variety, quality, and availability • Enriched products may be transformed into a domestic food industry surge capacity available for high need food crisis periods • Business growth opportunity through new customers: institutional channel

  18. Advantages of Supporting the Local Food Industry 2 Market Reach • Enriched ready-to-eat foods become available across Zambia including high need areas that may not meet humanitarian food program inclusion criteria • Processors employ existing warehouse and distribution capacity for their retail business thereby increasing reach into both rural and urban markets • Products manufactured where they’ll be consumed Quality Control • Dependable Quality Control; facilities comply with Good Manufacturing Practices

  19. Advantages of Supporting the Local Food Industry 3 Food Security • Availability/Access • Use of local ingredients • Local distribution channels • Scalable production for food assistance programs • Utilization • Priced within 10-15% for product category • Formulated for digestibility and diversity • Appropriate packaging ensures product/ingredient integrity

  20. Results Product formulation • Simple formulation: not “designer” products • Written specifications and QC procedures • Sales to all three channels Lessons Learned • Processors with progressive management willing to invest • Somewhat well developed food industry • Multi-sector advisory panel: NGO, scientific, gov’t • Build on what exists, is familiar, and in retail demand

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