TRICK OR TREAT?Of Reese’s Buttercups and Plumpy’nut

AGENDA

➤ Reese’s Autopsy

➤ Reese’s Supply Chain

➤ USA and Ghana in Context

➤ Peanuts in the US

➤ Peanuts in Ghana

➤ Conclusion

AUTOPSY

BILL OF MATERIALS

AND SUPPLY CHAIN

BILL OF MATERIALS

56.70

21.00

18.71

1.00

0.18

1.00

1.00

2.18

Reese'sComprehensiveBreakdownofBOM

MilkChocolate* Peanuts Sugar Dextrose Salt TBHQ CitricAcid

SUPPLY CHAIN

Georgia & Virginia Texas Belt

California

Ghana

Hershey’s Factory (Hershey’s, PA)

USA AND GHANA IN CONTEXT

USA GHANA➤ Population: 25.9 Million

➤ GDP Per Capita: USD 1,401

➤ Caloric Intake: 2,850 Kcal

➤ Population: 318.9 Million

➤ GDP Per Capita: USD 55,904

➤ Caloric Intake: 3,770 Kcal

➤ Massive Micronutrient deficiencies in the US.

➤ Lots of hidden hunger in the US, with more than half of American children with less than enough levels of Vitamins D and E.

➤ One in 13 Ghanaian children dies before his or her fifth birthday.

➤ 8 in 10 children under 5 years of age and 3 in 10 women suffer some form of undernutrition.

NUTRITION NUTRITION

PEANUTS IN THE US

A 4-SENTENCE HISTORY OF PEANUTS

➤ Native to the Western Hemisphere.

➤ Originated in South America and spread throughout the New World through Spanish explorers

➤ Traders were responsible for spreading peanuts to Asia and Africa.

➤ Made its way back to North America on sailing ships in the 1700’s.

CANDY

➤ 10 states grow 99% of all peanuts in the US

➤ Biggest is Georgia (42%), followed by Texas (24%)

➤ 300 Uses of the Peanut (George Washington Carver)

➤ Mostly used for candy, other food products.

PEANUTS IN GHANA

Plumpy’Nut

THE ECONOMICS OF PEANUTS IN GHANA

“Theagro-ecologicalzonesinwhichpeanutsaregrownareprimarilyclassi7iedasGuineaSavannahandSudanSavannahareas,locatedprimarilyintheNorthern,UpperEastandUpperWestadministrativeregionsofGhana.”

—ComprehensiveAssessmentofthePeanutValueChainforNutritionImprovementinGhana

Source:AdaptedfromdatareportedthroughEsoko.comforvariousdatesinAugust2013

VERY DIFFERENT ECONOMIC STORY

CONTRADICTING STORIES…

WHAT IS HAPPENING

➤ Information inconsistencies

➤ Great abuse of market sellers in the production areas

➤ Secondary markets within Ghana (People in the North would have to sell to the South, who would sell to Hershey’s)

➤ Esoko research

IT GETS WORSE…

PLUMPY’NUT IN GHANA

➤ Massive malnutrition

➤ Peanut-based Ready-To-Use Therapeutic Food (RUTF)

➤ Ingredients: peanut butter, sugar, oil, dried milk and a mineral-vitamin complex (CMV)

➤ Very useful, prevalence of peanut allergies in target population is low

➤ Way better than F100 milk supplements

PLUMPY’NUT EXPOSÉ

➤ BUT, patent issues with regards to Nutriset—PlumpyNut’s producers— patents.

➤ Produced only in France.

➤ 90% of all UNICEF RUTF purchases.

➤ Exposed in a New York Times article in 2010.

➤ Eventually allowed some other producers as well.

CONCLUSION

SUMMARY AND NEXT STEPS

➤ PLUMPY’NUT—Cycle of malnutrition and poverty in Ghana.

➤ Peanut is candy in the US, food for survival in Ghana.

➤ Hidden hunger in the US, whereas severe malnutrition in Ghana.

➤ INFORMATION INCONSISTENCIES—The peanut producers suffer the most of in the supply chain.

➤ Massive challenges for increasing the quality of life of peanut farmers in Ghana.

➤ There is a lot of unequal growth in Ghana due to poor economic policies.

➤ This translates to school absenteeism, as well as other negative HDI factors.

Candy here? Survival there.

TRICK OR TREAT?Of Reese’s Buttercups and Plumpy’nut