Arthur Stevens Supply Chain Manager

Mafurra – Production, conservation and processing: Business opportunities and value chain

Region and membership

• Non-profit trade association with 60 members

• Small scale enterprises in 8 countries

• Sustainable income for rural people

• Protect biodiversity and support sustainability

• Biotrade development in southern Africa

Mission

Alleviating poverty and protecting biodiversity in the region by developing industries that are not only economically successful but also ethical, sustainable and regulatory compliant.

PhytoTrade Africa was established in 2001 as the trade association of the natural products industry in southern Africa.

Environmental Social Economic

Sustainable harvesting

Tree conservation

Research and development

Regulatory

Product development

Market access

Sector development

Supply chain

Access and Benefit Sharing (ABS)

Monitoring and evaluation

Resource management

Job creation

Capacity building

Economic empowerment

Key activities

Access and Benefits Sharing

Our ABS services

What Providers want

What Users want

• Facilitating dialogue • Organise and negotiate strong, realistic contracts including PIC, MAT, BSA • Assist Users to navigate Provider requirements • Assist providers and local SMEs obtain clear arrangements with industrial clients • Facilitate research with relevant institutions • Design projects with cognisance of National Development Plan and long term Industrial

development aspirations • Support local SMEs to develop supply chains, gain market information and access • Obtain and facilitate technology transfer and value addition matching market requirements • Maintain competitiveness

• Facilitating dialogue • Organise and negotiate strong, realistic contracts including PIC, MAT, BSA • Assist Users to navigate Provider requirements • Assist providers and local SMEs obtain clear arrangements with industrial clients • Facilitate research with relevant institutions • Design projects with cognisance of National Development Plan and long term Industrial

development aspirations • Support local SMEs to develop supply chains, gain market information and access • Obtain and facilitate technology transfer and value addition matching market requirements • Maintain competitiveness

• Reliable and transparent R&D partners • The opportunity to add more value, develop skills and enhance capacity • Market access and good commercial partners • Business growth and development

• Legal certainty • Robust and transparent supply chains • Access to novel and innovative materials and products • Consistent high quality of materials • Reliable partners for commercialisation processes • Creation of realistic expectations around product and market

• Baobab seed oil

• Baobab Fruit pulp powder

• Marula seed oil

• Ximenia americana seed oil

• Mongongo seed oil

• Kigelia africana fruit extract

• Mafurra butter

• Kalahari Melon Seed Oil

• Marula Fruit pulp

• Devil’s Claw

Focal species & products

Baobab seed oil Adansonia digitata Cosmetic and nutraceutical ingredient

• High saponification value • An emollient with omega

3, 6 and 9 oils • Useful in the treatment

of eczema and psoriasis and other dry skin conditions

Canhu seed oil Sclerocarya birrea Cosmetic and nutraceutical ingredient

• High oleic acid content • High oxidative stability • Antioxidant capacity • Used to treat dry skin and

maintain hydrated smooth skin

• Nourishing emollient

Sour plum seed oil Ximenia americana Cosmetic ingredient

• Long chain fatty acids • Ximenynic acid • High viscosity • Antimicrobial properties • Skin moisturising, anti-acne,

anti-aging • Treat dry, fragile or damaged

hair

Focal species & characteristics

Mongongo seed oil Schiniziophyton rautanenii Cosmetic ingredient

• High eurcic acid content • High oxidative stability • Rich in phytosterols • Rich in vitamin E • Healing, nurturing and hair

strengthening • Regenerating and

restructuring properties for both skin and hair

Mafurra butter Trichilia emetica Cosmetic ingredient

• High proportion of oleic acid provides good stability

• Oil for soap making • Butter nourishes and

revitalises skin • Resource availability for

industry scale production

Devil’s Claw tuber Harpagophytum procumbens Cosmetic, pharmaceutical and nutraceutrical ingredient

• Iridoid glycosides: harpagoside, harpagide, procumbide

• Phenylethanol derivatives • Anti-inflammatory, analgesic,

and anti-arthritic • Treatment of rheumatism and

arthritic ailments

Focal species & characteristics

Sausage tree fruit extract Kigelia africana Cosmetic, pharmaceutical and nutraceutical ingredient

• Secondary metabolites including iridoids, flavonoids, glycosides, napthoquinones, fatty acids, and sterols

• Skin firming and tightening • Anti-melanoma and sun-

damaged skin

Kalahari Melon seed oil Citrullus lanatus Cosmetic ingredient

• Extracts have shown antioxidant, anti-inflammatory and analgesic potential

• Moisturising, regenerating and restructuring properties

• Quickly absorbed

Baobab fruit pulp Adansonia digitata Cosmetic and nutraceutical ingredient

• High levels of vitamins, including Vitamin C

• High levels of minerals, including calcium

• High in antioxidants, fiber • Excellent flavor enhancement

qualities

Focal species & characteristics

Mozambique

• 10 Mozambican members include processors, specialized service provides and government institutions

• Programs and businesses currently operate in Maputo, Gaza, Inhambane, Manica, Tete and Cabo Delgado

• Main products: baobab fruit pulp, marula (canhu) seed oil, mafurra butter, honey

Membership and species

MAFURRA Reviving the value chain for

FEASIBILITY RESEARCH

Feasibility study and background research

Mafurra known and commercially used in Mozambique since 1800s

• 1950-60s: Annual production of 7-10.000 tons

• Decline due to independence, civil wars leading to difficult access to rural areas

• No current exports

• Use in domestic soap market but declining

• Resource remains significant and available

• Mafurra belt concentrated in Maputo, Gaza and Inhambane Provinces

MAFURRA Reviving the value chain for

FEASIBILITY RESEARCH

IDENTIFIED FUTURE POTENTIAL

• Similar fatty acid profile to palm oil

• Growth in interest in sourcing green and sustainable oils for industry especially cosmetics

• Search for alternates to palm oil

• Mafurra unlikely to supplant palm oil but supplementary alternative

• Need for cheap oils and fats with right fatty acid profiles for derivative functions

• Opportunity based on high volume, low unit price

• Keys:

• Volume reliable production • Produce profitably at identified price points • Current palm oil prices around US$800/ton • Mafurra needs to trade near/just above this price

Production needs to be ethical and sustainable

MAFURRA Reviving the value chain for

INDUSTRY STRATEGY

PhytoTrade and its local members have been working since 2011 to support the revitalization of the Mafurra value chain

• Identify and build on potential local demand for Mafurra for soap and for cooking/food oil

• Build revitalized production base capable of large scale production

• Demonstrate to potential industrial partners capacity and capability for large volume production

• Identify potential for value maximizing in Mozambique, including refining

• Identify other areas for value addition including regional and international soap and cosmetics exports

PHYTOTRADE MAFURRA STRATEGY

BUSINESS SUPPORT

• Confirm size and availability of resource

• Establish supply chains with other NGOs and private sector

• Become part of planning process

• Improve quality through training and post harvest procedures

• Improve and increase Mafurra tree stocks

• Work with NGOs and private sector on:

• Traceability, Quality assurance

• Certifications

• Sustainability

• Seek development of international markets

• Develop manufacturing capacity in Mozambique

MAFURRA Reviving the value chain for

MAFURRA OPPORTUNITIES Fresh Fruit

Main Current Uses • Fresh fruits for human consumption

• Fresh fruit sold in markets for home processing

• Processing into munhatse cooking oil by traditional methods without any QA/QCconsideration. Improved procedures ensuring QA/QC to standardise cooking oil product quality for human consumption and upscale feasibility

Income Growth Potential • Short shelf life limits current

availability • Improved handling & storage

conditions would extend shelf life & increase availability

• Develop processing at harvest point to raise income potential at harvest level

• Develop new processed food products utilising fresh Mafurra

• Small scale production currently

MAFURRA OPPORTUNITIES Fresh Fruit

Income Growth Potential • Poor quality post harvest

handling and storage leads to poor quality oil on pressing. Improved procedures will lead to improved resulting oil pressed from the seeds

Main Current Uses • Seeds from fresh fruit and after

processing as well as gathered for drying and sale to Mafurra oil processors

MAFURRA OPPORTUNITIES Dried Mafurra Seed

Income Growth Potential • Seed sold during rains poorly

conditioned due to inadequate post harvest handling & storage

• Improved procedures reduce moisture content, external contaminants

• Leads to longer selling window • Leads to higher bulk availability • Leads to higher bulk seed prices

resulting from higher yields and prices

Main Current Uses • Dried bulk seed collected

during fruiting season for sale to processors conditioned due to inadequate

MAFURRA OPPORTUNITIES Dried Mafurra Seed

Income Growth Potential • Competitively priced quality

Mafurra oil could lead to increased use in laundry soap and substitute palm oil (PFAD) imports

• Improved Mafurra oil image in Mozambique could lead to use in higher value soaps eg bath and tablet soap

• Higher quality uniform specification could lead to regional bulk export for regional soap manufacture

Main Current Uses • Processing of Mafurra oil for

use laundry and tablet soaps

MAFURRA OPPORTUNITIES Geographic areas

Province Districts Inhambane Zavala, Inharrime, Jangamo, Massinga, Homoine, Maxixe, Panda Gaza Manjacaze, Xai Xai Maputo Significant, to be assessed Sofala Present, to be assessed IIAM Resource Assessment commissioned by PhytoTrade

POTENTIAL VOLUMES - Mafurra

Potential bulk Mafurra production costs & revenues

• PFAD July/Aug 2015 price range US$535-560/tonne FOB Malaysia* • Price Point for Mafurra taken as US$555/tonne ex-factory Maputo** * Palm Fatty Acid Distillate (PFAD) is made from refining crude palm oil. It is

used for many industries such as soap industries, animal food industries and also is used as raw materials for bio-diesel and chemical industries.

** Conservative. Positioning as “green alternative” could lead to much higher prices

SUAVE SOAP A PHYTOTRADE PILOT STUDY

SUAVE SOAP A PHYTOTRADE PILOT STUDY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUAVE SOAP A PhytoTrade case study

SALES SUMMARY A total of 1,067 soaps were distributed and sold over the course of three weeks beginning with the training. • Pre-promotion: 367 • Promotion: 235 • Post-promotion: 305 • Additional soaps ordered: 160 Most vendors sold the majority of their soaps during and after the promotion and most saw a boost in sales post-promotion. One vendor approached her chief to support sales and sold the majority of her soaps prior to the promotion.

SUAVE SOAP A PhytoTrade case study

MAJOR FINDINGS: PROMOTIONAL EVENTS • Highly effective tools to boost sales and increase visibility • T shirts, free samples, banners • 95% of survey respondents never had consumer promotional event in their

communities MAFURRA KNOWLEDGE • 90% consumers indicated knowledge of benefits of Mafurra contributed to

decision to purchase Suave • Confirmed for communities with experience of Mafurra and those without SOAP SIZE • Earlier belief was that rural markets prefer larger soap • From this pilot 90% rural consumers prefer 100g soap to 175g & 300g

SUAVE SOAP A PhytoTrade case study

PURCHASING POWER – Rural Mozambicans wiling to spend more than expected.

o 55% happy to spend more than MZN35 on a single bar of soap o PhytoTrade research showed most households buy at least 4 bath

soaps per month o 3,000,000 Mozambican households o Potential sales of €10,000,000 month o 1% market access gross potential €100,000/month o Equivalent to 7 tonnes/month of local Mafurra butter use

THERE IS A VAST UNTAPPED MARKET IN MOZAMBIQUE! AND SIGNIFICANT POTENTIAL TO REVIVE THE MAFURRA SECTOR!

SUAVE SOAP A PhytoTrade case study

Mafurra – Production, conservation and processing:

Business opportunities and value chain

THANK YOU!

Arthur Stevens Supply Chain Manager

arthur@phytotradeafrica.com