Solar Food Drying

Revolutionizing the war on global hunger, using markets, profits, and entrepreneurial instinct. 1

Underlying Problems:4 Halves of the Have-Nots

2

Solution – implementation of: • Grass-roots based food preservation solutions • Utilization of appropriate technology • Linkages to rural communities• Orientating towards women

Mission

Why• Increase food security, decrease hunger and

malnutrition, and create opportunity for poor families…

How• through a distribution network of franchise stores that…

What• provide training on food processing and preservation,

sell related supplies, and facilitate finance…

Who• to entrepreneurial women and families involved in

agriculture.

3

Concept Summary Solar-based food-drying is the oldest ‘processing’ technology

Benefits of drying include:

Ease of practice

Straightforward food safety solutions

Culturally familiar

Provides long-term storage with minimal packaging

Franchising and NGO partnership to allow rapid scaling of project

Solution has substantial competitive advantages:

Creates new products like tomato flour

Solves related problems like malnutrition and lack of income

Brings opportunity to rural poor (especially women)

4

ApproachMission: Preserve Food, Improve Nutrition, and Create Entrepreneurial Income by:

1. Capacity building and technology transfer including training, standards development/enforcement, and manuals

2. Distribution of implementing equipment and any required supplies (through profit-driven models)

3. Arrangement for commercial microfinance for end-user clientele when needed

5

Business Model1. Franchise model distributing through existing local shops

(preferably woman owned)

2. Three tiered distribution through franchisees

3. All tiers of distribution profit from model, sustaining the technology transfer

4. End user women sell to neighbors, central processor, and is able to consume themselves

5. Reservoir facilitates markets and ensures a buyer

6

Food Drying Strategies1. Locally manufacture high quality food dryers

2. Food dryers will be sold at price under $300 and process most products in 1-2 days

3. Scale to many thousands of dryers in field and expand to dozens of food products

4. Partner with NGOs for accelerated distribution

5. Partner with food drying experts (e.g. SUA) for improved processes

6. Partner with processor for purchase of foods

7. Distribute needed packaging to end-users

7

Survey of Dryer DesignsHi Quality Western Designs

Low Price ‘Village’ Designs

Reservoir Dryer

Price $2,000-$8000 $500-$800 Under $300

Efficiency Dry a tomato in 1-2 days

Dry a tomato slice in 5-7 days

Dry a tomato slice in 1-2 days

Results High quality Tomatoes often rot High quality

Return on Investment

High price means long time to ROI

Dryer throughput is low so difficult to achieve ROI

Fast ROI (half year)

Price accessible to villagers

Rarely Usually not Usually

Manufacturing Specialty sources (solar generators)

Locally Locally

8

Solar Drying Training

Product New design allows mass market among rural poor

Low sales price (under $300 USD)

High efficiency (10+ kilos tomatoes in 1-2 days)

Contract manufactured locally from locally available materials creating additional community economic development

Significant temperature differential from inside dryer to the outside environment allows for operation in a wide variety of conditions

Simple operation

Local maintenance is possible within the village – no complex parts

Culturally acceptable process, limited sensitization

10

Foods Able to be Dried

Potatoes

Cassava

Bananas

Sweet Potatoes

Other Staples

Tomatoes

Mangos

Pineapples

Apples

Pears

Other Fruits

Pumpkins

Carrots

Onions

Garlic

Peppers

Other Vegetables

Spinach

Rosemary

Other Herbs and

Leaves

Hibiscus

Lemon Grass

Other Tea Leaves

Ground Nuts

Cocoa

Vanilla

And much more!

11

Distribution Value Chain

12

• (Contract manufacturer) and distributor of goods

• Technical training on food technologies

• Link to finance

Reservoir

• Dealer of goods

• Coordinator and eventual trainer on technologies

Franchise Stores

• Sells to contract buyer OR

• Sells preserved foods locally OR

• Consumes personally

Food Drying Micro Businesses

• Purchases dried goodsConsumer

PartnershipsContract

Manufacturer• Local manufacturer that produces high

quality to specification

NGOs

• Leverage existing formed groups, possible group finance and support of field costs (interested partners include MUVI, fintrac, Africare, Care, Concern, etc.)

Finance• Provides finance of dryer purchase by

individuals or groups

SUA• Provides technical advice on training manual

, food safety, etc.

Cheetah• Provides mentoring, financial management,

and finance support to Reservoir

13

Key Partnership Details

MUVI: Organized and registered 5600 tomato farmers with improved seeds and basic agronomy training

Fintrac: On the ground agronomists to continue and improve agronomy training, provide finance and support for Reservoir, and incorporate additional groups to do drying in Arusha, Dar es Salaam and Morogoro

Sokoine University of Agriculture (SUA): Operating a major program in food drying, provide assistance with government certifications, nutrition analysis, food safety, and referrals to possible employees and partners

IOP: Ilula Orphans Project with organized tomato and onion farmers

14

Staffing

CEO (Cheetah in Yr. 1)

Marketing (Volunteers Managed by Cheetah Yr. 1)

Training and TestingField Training Assistant (To

be hired)

Product Management (+ Logistics, Sales) (To be

hired)

Food Scientist (Future, fulfilled by SUA, a

local university, in first year)

Accounting (Outsourced to Cheetah indefinitely)

15

*Cheetah holds down initial costs by outsourcing services in early stage when starting companies

Planned Milestones for Year 1

1. Complete launch including an operators manual, finalized design, and contract for locally sourced manufacturing

2. Organize buyer finance

3. Pilot placement of dryers in up to 10 locations with up to 200 end-users and provide intensive start-up support in the first 3-6 months

4. Improve design, training, manuals, etc. based on experience and begin to scale sales with partners

5. By end of first year place 2000 in field

6. Develop assistance for marketing of dehydrated foods

7. By end of year 1, recruit CEO preferably with investment

16

Years 2-3 Plan Milestones

1. Expand Reservoir franchisee locations and increase distribution

2. Partner with NGOs to offer elsewhere

3. Find product processing facility to contract purchase from raw processors and provide; high quality post processing, food safety, marketing and distribution

17

Financial Summary (USD)

18

Revenue, 2,275,992

Gross Margin, 933,

157

Net Profit, 158,2

77

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Year 1 Year 2 Year 3

…but hunger persists.

Food as far as the eye can see…

It’s time to get practical. It’s time to address the root causes.