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1International Food Aid Conference
Supporting the Zambian Food Industry to Develop Specialized Food Products
Fred GrantPractice Manager, Nutrition and Health
Land O’Lakes International Development
April 7, 2009
2Land 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
3Land 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
4Overview 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
Business Model
ZAMBIAN FOOD PROCESSORS
Forward Contracts Aggregated Demand
3INSTITUTIONAL
CHANNEL
HEALTH FACILITIES, WORK, SCHOOLS, MILITARY Forward Contracts Aggregated Demand
1FOOD ASSISTANCE
CHANNEL
HUMANITARIAN
ZAMBIANHOUSEHOLDS
2
RETAIL CHANNEL
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
10Product 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
11Product 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
Food Product Composition ProcessorGo-Power™Enriched Sandwich Biscuit
Fortified, whole grain biscuit with peanut butter filling
Sunrise Biscuits Company Ltd.(Ndola)
Formula 5™Enriched Maheu Beverage
Fortified, milk-maize-soy drink
Trade Kings Limited(Lusaka)
Lacto-Live Mabisi™Mabisi Fermented Milk
Fermented milk with probiotic cultures and prebiotics
Parmalat-Zambia(Lusaka)
13
Nutritional Benefits - BiscuitFood Product
Nutritional Benefits
Go-Power™Enriched Sandwich Biscuit
High energy density Benefits those with decreased appetite 500 kcals/100 grams
Fortified 14 vitamins and minerals ~ 20-50% RNI
Tasty: can help stimulate appetite
14
Nutritional Benefits - Maheu
Food Product Nutritional Benefits
Formula 5™Enriched Maheu Beverage
Improved energy density Fortified
8 vitamins and minerals ~ 10-30% RNI
Tasty: can help stimulate appetite Enzyme treatment aids digestibility
15
Nutritional Benefits - MabisiFood Product
Nutritional Benefits
Lacto-Live Mabisi™Mabisi Fermented Milk
Improved energy density Micronutrient rich: 24 vitamins and minerals Tasty: can help stimulate appetite Probiotic cultures and prebiotics aid in digestion and nutrient absorption Fermented milk is helpful for diarrhea and thrush
16
Commercial Benefits
Food Product Commercial BenefitsGo-Power™Enriched Sandwich Biscuit
Product are common and popular among children and adults in Zambia Familiar throughout southern Africa, already exported Convenient: ready to eat or drink = no labor/preparation or cooking fuel needed Processing and packaging increase product safety and storage Quality nutrition becomes a key product feature and value to consumers
Formula 5™Enriched Maheu Beverage
Lacto-Live Mabisi™Mabisi Fermented Milk
17Advantages 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
18Advantages 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
19Advantages 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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