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“Value” in Value-Added Food Processing A Commercially Sustainable Business Model for Enriched Ready-to-Eat-Foods Land O’Lakes International Development with USAID Office of Food For Peace and PEPFAR Rolf Campbell, consultant. International Food Aid Conference Kansas City April 16, 2008.
A Commercially Sustainable Business Model for Enriched Ready-to-Eat-Foods
Land O’Lakes International Development
USAID Office of Food For Peace and PEPFAR
International Food Aid Conference
April 16, 2008
Introducing a nutrition product development activity in Zambia.
Who: Land O’Lakes International Development supporting 3 Zambian food processors with a food industry advisor.
Funded by: Title II ICB Grant - USAID Office of Food For Peace, and PEPFAR - Office of the Global Aids Coordinator)
What: Assist food processors over 2 years to develop and commercialize nutrient enriched foods that are already familiar in the markets and in the diets of Zambians.
Where: Zambia: Lusaka, Ndola
Goal:Increase the available options for nutritious, processed and packaged foods for people living with HIV/AIDS and all others who will benefit from better nutrition.
Host country Food Processors are accountable to improve the nutrition impact of their products in the diets of consumers in their country.
Under-nutrition and the presence of food aid should signal a challenge and an opportunity
for processors in countries receiving US commodities (such as wheat, maize, oil, legumes), “value added” fortified blended foods (such as fortified corn-soy blend, wheat-soy blend, RUTF).
Because the ultimate aim of foreign assistance - including food aid - is to address a temporary gap, not to become an endless alternative to long term self-sufficiency.
NOTE: Product development costs and marketing are entirely funded by the Zambian Processors who also control the rights to their formulas and processes.
POTENTIAL Benefits for the Food Supply and Nutrition Quality
POTENTIAL Values to the Consumer
People do not seek or eat “nutrients”, we choose foods.
People prefer to not eat just one food; we choose meals.
People are seeking foods and making food choices
The only nutrients that count
are in the foods people CHOOSE to eat.
Therefore: Make a variety of foods that people are choosing to eat - more nutritionally complete.
flows to consumers;
Information flows to
FOOD AID CHANNEL
WFP, NGOs, PVOs, buy and distribute ENRICHED FOODS
ENRICHED FOODS bought
By PLWHA and other consumers
Make & Sell
SCHOOLS buy and distribute ENRICHED FOODS
Advantages of a Commercial, Sustainable Business Model
Market and economic analysis
Set boundaries on selling price, cost of product to produce, buying intentions from key market channel leaders for these or similar replacement products
Buyer and consumer education
about the nutritional value of enriched ready-to-eat products. Customers and consumers must embrace the critical significance of choice: making enriched foods a regular part of their diet; the price/value of the products
Foods must deliver a nutrient-dense, balanced combination of macronutrients and micronutrients
Measurably contribute to improved nutrition status when eaten under the right circumstances (adherence to diet, duration, amount consumed, other foods in the diet, physical condition, needed medical interventions). Nutrition experts must recognize the products’ nutrition advantage and consumers must experience the implied “product promise” of long term health, energy, and growth from improved nutrition.
Establish Product Design Criteria and Product Acceptance Criteria
Meet guidelines for nutritional needs of Zambians including those PLWHA
Conform to Zambian dietary practices and preferences
Conform to National Food standards, regulatory
Meet “mass market” consumer expectations for price, packaging, and eating appeal
Formulate (enrich), process, and package based on principles of food and nutrition science and good manufacturing practices (“GMP”)
When possible, be compatible with the operations and logistics of NGOs, PVOs, and their local partners that provide nutritional supplementation to PLWHA.
Manufactured by Sunrise Biscuits
Two enriched baked whole grain-based biscuits enclosing an enriched peanut butter based “cream” filling – Product Benefits
Sunrise Biscuits Company Ltd.
For Samples or Quotation Inquiries, Contact: Mr. S. S. Langar
Lukasu Road, Light Industrial Sites; P.O. Box 70506, Ndola – Zambia;
Phone: +260-2- 650637 / 8; Fax: +260-2-650132; Cell: +260-955 434846;
Manufactured by Trade Kings, Lusaka, Zambia
Enriched milk-maize-soy, fortified drink – Product Benefits:
(“my maheu”), sought out by all ages.
TRADE KINGS LIMITED
For Samples or Quotation Inquiries contact: Mr. Winani - TEL: 00-260-1-286117; E-mail: email@example.com; LUSAKA, ZAMBIA
Manufactured by Pamalat, Lusaka, Zambia
“Studies show that daily consumption of Bifidobacterium lactis, BB-12 - such as those found in one 250 mil serving of Lacto-Live Mabisi™ - may contribute to overall digestive health with the associated benefits.”
For Order Information: Mr. Sandress Nyierenda, Zambia Sales & Marketing Manager
Office Phone : 211 286 855 - 287 745; Mobile: 0977 770 318
E mail: firstname.lastname@example.org
In Africa – Todd Thompson
Land O’Lakes Country Director, Zambia, Africa;
Phone: 260 21 1 263 929 / 30;
Fax: 260 1 265 053
In USA – Mara Russell
Land O’Lakes Title II Director, WDC;
E mail: email@example.com;
Phone: (703) 524 1739;
Fax: (703) 524 3668
E mail: firstname.lastname@example.org;
Phone: 612 839 4050;
Fax: 612 823 4688