The SAVE FOOD Mango Project - A practical approach to reduce food loss in Kenya. Challenges and success factors along the value chain - Ipack-Ima
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The SAVE FOOD Mango Project A practical approach to reduce food loss in Kenya. Challenges and success factors along the value chain. Milan, 30.05.2018 Sonja Mattfeld, Partner, africon GmbH 01/06/2018 © africon GmbH 2016 1
Development of the idea Facts and figures showed challenges and opportunities in Kenya. Mango production; 2 % Export Loss of 5% Processing Source: Kenya Investment Authority (2012); www.oanda.com; Mango buying price at farm, GIZ Agribusiness (2010); 550,000 MT 93 % mangoes; 300,000 MT Domestic market 2015 36% 2015 www.seeberger.com; http://in-euters.com; ww.nieuwoudt-farm.com 1,295 % 0.20 € / 1 kg fresh mangoes 2.59 € / 100 g Sales price farm Sales price at shop 01/06/2018 © africon GmbH 2016 2
Success factors of the Mango Project A study based on qualitative interviews with players inside and outside the project revealed that the entrepreneur is the key success factor. Entrepreneur Project organisation / research Source: International School of Management, Dortmund (Lina Schonebeck) Project-related factors External factors • Geographical position • Cooperation • Changing society • Corruption • No target group- • Project idea • Entrepreneurship • Political instability oriented support • Private company • Politcal stability • Language, culture • Short project duration • Budget • Laws/Rules Successful development project 01/06/2018 © africon GmbH 2016 3
Initial research and learnings The local research concentrated on key areas within the Kenyan mango value chain. Cultivation Processing Sales & Marketing 01/06/2018 © africon GmbH 2016 5
Project organisation Before the final definition of the core project team the co-ordination was quite challenging in order to find the right partners. Project component Partner Cultivation, approx. 100 different Capacity Building approaches and and conversations Logistics approx. 150 Processing different and approaches and Packaging conversations approx. 70 Sales different and approaches and Marketing conversations 01/06/2018 © africon GmbH 2016 6
Local project partner With Azuri Health, an innovative and already established company could be identified as local partner in Kenya. 01/06/2018 © africon GmbH 2016 7
First step: New location In order to increase their output, Azuri needed to find a new location to set up a new processing and packaging facility. Thika Nairobi 01/06/2018 © africon GmbH 2016 8
Construction phase Specific architectural plans were developed and the construction began. 01/06/2018 © africon GmbH 2016 9
Inauguration of new factory The new Azuri factory was inaugurated in February 2017 with over 80 people in attendance. 01/06/2018 © africon GmbH 2016 10
Farmer’s engagement Azuri doubles its farmer network and engages them on best practices for production of the best variety of mangoes. 01/06/2018 © africon GmbH 2016 11
Mango handling The logistics as well as storage have been improved significantly with the new built facility. Delivery Storage Ripening 5,000kgs of mangoes are Azuri has capacity to store 10 Mangoes take 3-5 days to deliveried to the factory twice tonnes of fresh mangoes at any ripen. The ripening can also be a week. given time. accelerated using natural agents. 01/06/2018 © africon GmbH 2016 12
Processing The mangoes go through the process of pealing, slicing and are then put in a biogas-solar drier for the drying process. Peeling Slicing Drying • A team of 20 staff members • A team of 20 staff members • The dryer has a capacity of 1 peels 1,000 - 1,200 slices 1,000kgs of mango flesh in ton per load every 2 days not mangoes 1 hour. using nights. in 1 hour (average weight of • Plans for automation are • A more automated process one mango is 0.5kg). underway. could reduce the drying time • 50% of the mango is stone to 10 hours since loading will and peel, 80% of the flesh is be faster and work in shifts. water. 01/06/2018 © africon GmbH 2016 13
Process improvement Azuri has adopted new and efficient ways of drying mangoes to improve output and hired 23 new workers. 01/06/2018 © africon GmbH 2016 14
Packaging and shipping preparation With high hygienic standards and technologies from SAVE FOOD partners, packaging gets easier and convinces also overseas buyers. • Japanese buyer on a quality check visit 01/06/2018 © africon GmbH 2016 15
Sales & Marketing The new state of the art design by SAVE FOOD increased sales and gives Azuri an outstanding position in the local market. New WIPF pouches 01/06/2018 © africon GmbH 2016 16
Summary Thanks to the support of the SAVE FOOD initiative, Azuri could develop considerably and can be considered as ‘bankable’ project. Birth of Final definition of Contract Inauguration of Additional project idea project and new factory with investment partners 23 new jobs through German investor Oct. 2013 July 2014 June 2015 Feb. 2017 Feb. 2018 • Market research in Kenya • Legal and administrative Project implementation at local • Identification and evaluation • Local sales collapse clarifications pace: of local partners • Technical hurdles • Fundraising of 55.000 € • Issue-related payments • Formation of core working • First export inquiries • Intensification and • Overall management group of SAVE FOOD • New strategic set-up deepening of networks members in Kenya 01/06/2018 © africon GmbH 2016 17
Next steps Azuri continues its journey of growth at a moderate and sustainable pace and looks optimistically towards the future without forgetting its origin. Invest in capacity building for process optimization, #1 production management and quality control. Increase working capital for buying enough quality #2 mangoes during the peak season. Get necessary certificates (HACCP, Global GAP etc.) and #3 start export of dried mangoes as bulk ware. Regain the local consumers after collapse of #4 supermarket chains in Kenya. Discover new market segments with products, e.g. fruit #5 leathers, for the BOP consumers. 01/06/2018 © africon GmbH 2016 18
Questions? Please do not hesitate to contact us: Germany Germany Nigeria Kenya africon GmbH africon GmbH africon office africon consulting services Dorfstr. 34 Carl-Ronning-Str. 1 231, Ikorodu Road (Kenya) Ltd. Ilupeju, 100525 Eden Square Complex Chiromo Road 40629 Düsseldorf 28195 Bremen Lagos Nairobi +49-211-7817-9960 +49-211-7817-9960 +234-(0)-12904554 +254-705-327 599 mail: info@africon.de mail: info@africon.de mail: info@africon.de mail: info@africon.de 01/06/2018 © africon GmbH 2018 19
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