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 - Ipack-Ima
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
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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 - Ipack-Ima
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

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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 - Ipack-Ima
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
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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 - Ipack-Ima
The entrepreneur
             Tei Mukunya, founder and CEO of Azuri Health Ltd.

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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 - Ipack-Ima
Initial research and learnings
             The local research concentrated on key areas within the
             Kenyan mango value chain.

                  Cultivation                    Processing         Sales & Marketing

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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 - Ipack-Ima
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

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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 - Ipack-Ima
Local project partner
             With Azuri Health, an innovative and already established company
             could be identified as local partner in Kenya.

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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 - Ipack-Ima
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

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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 - Ipack-Ima
Construction phase
             Specific architectural plans were developed and the
             construction began.

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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 - Ipack-Ima
Inauguration of new factory
             The new Azuri factory was inaugurated in February 2017 with over
             80 people in attendance.

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Farmer’s engagement
             Azuri doubles its farmer network and engages them on best practices
             for production of the best variety of mangoes.

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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.

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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.

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Process improvement
             Azuri has adopted new and efficient ways of drying mangoes to improve
             output and hired 23 new workers.

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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

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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

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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

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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.

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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

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