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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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