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

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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

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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

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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

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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

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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

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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)

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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

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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

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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

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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

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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