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Marketplace for Nutritious
Foods
Bonnie McClafferty, Director, Agriculture and
Nutrition, GAIN
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
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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
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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
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.
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The Marketplace for Nutritious Foods
Innovation
Accelerator Community of Practice
Innovative Finance
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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
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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
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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
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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
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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
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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
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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
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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
80
proposals
submitted
A Working Marketplace:
Mozambique
13 innovative
concepts
received
business
planning
support
MIC selected
5 enterprises
to receive
grants and
technical
assistance
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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
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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
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
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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
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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
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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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