PLARD II: Groundnut Production, Marketing and Processing ...Promoting Innovation & Trade in...
Transcript of PLARD II: Groundnut Production, Marketing and Processing ...Promoting Innovation & Trade in...
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RonipamThe Food Company
www.ronipam.com
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Promoting Innovation & Trade in Horticulture
KIGALI, Rwanda 25TH– 27TH November 2015 pitch
Value Addition – Best Practices
Presented by: Rodney J.N. Miselo
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Ronipam is a private company limited by shares, incorporated on
7th March 2012. Founded by Rodney Miselo and Priscilla Mtopa,
located in Lusaka, Zambia.
Introductio
n
The innovation is aimed at addressing the wastage of fruits and
vegetables by processing them into valued added products, working
with smallholder farmers to improve rural income.
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Brands & Products
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‘adding’ to raw ingredients and processing them in a
way that increases economic return.
Value
addition
Reinvention of product for economic gain.
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Subsistence agriculture
Agribusiness
Changing trends in
agribusiness
Commodity driven market
Product driven market
Homogeneous group of crops Crop
diversification
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Olden day concepts
Source of energy and nutrients, Focus was on balanced
diet.
Food concepts
Modern day concepts
Provide heath benefits • Weight control • No chemical
additives • Fresh • Long shelf life • Safe food •
Require minimal preparation • Ready-to-eat form • Trans
fats •Food allergens
Eat to live Eat for good
looking and well-being
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Commodity vs. Product
Why value added products?
Commodities are…
Identical from farm to farm
Subject to price
fluctuations
Production - oriented
Value-added products
are…
Unique
Less price sensitive
Consumer -oriented
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In general, food processing is applied for one or more of the
following reasons: preservation, extending the harvest in a safe
and stable form; safety; quality; availability; convenience;
innovation; health and wellness; and sustainability
Primary
Processing
Cleaning
Grading
Conditioning
Packaging
Storage
No physical transformation
of commodity
Secondary
Processing
Paddy to Rice
Wheat to Flour
Oilseed to Oil
Pulses to Dal
Dal to Besan
Physical transformation
but product is not ready
to eat
Tertiary
Processing
Cooking Rice
Baking
RTE Foods
Pickles
Ketchups
RTE Products, convenient.
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Food Processing
Provides
Largest
manufacturing
sector
Off season
Food
availability
Enhanced
Marketability
Added
functionalityNutritional
improvement
Forward and
Backward
linkages Increased shelf
life and storage
quality
Preserve
Health
compounds
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Industry Growth Drivers -
DemandIncreased spending
on healthy foods
Increased family and
working women
Demand for functional
foods
Organized retail and
private label penetration
Changing demographics
Rise in disposable
income
Increasing
urbanization
Lifestyle and
AspirationsFood Processing
Demand Drivers
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Huge wastage across the supply chain leads to lower level
of processing and hence low value addition…
Field Losses
(Pest, Diseases, Rodents..Etc.)
Pre-Processing
(e.g. inefficient harvesting, drying,
milling)Transport
(e.g. Spillage, Leakage)
Storage
(e.g. Technical deficiencies)
Processing & Packaging
(e.g. Excessive peeling, washing)
Marketing
(e.g. Spoilage, rotting in stores)
Wastage by Consumers
(e.g. Overeating, food wastage)
Field
Form
Consumer
Producer
Developing Countries –
Relatively high losses in
the initial parts of the
value chain.
Developed Countries –
High losses at a later
stage in the food chain
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High domestic demand and supportive policy significant opportunities across the food
processing value chain.
Farm inputs FarmingMarketing/
AggregatorProcessi
ng
Logistic
s
(Food)
Retail
Service
s
Consumer
Food Safety
Management Systems
Opportunities
Product
Design
Quality
Control
Transport
Services/
Infrastructure
Financial &
Business
Services
Market
Intelligence
Food Parks/
Market
Integrated
cold chain
Backward and
Forward
Integration
Key
Opportuniti
es
B2B Sales
Quality
Control
Labs
Joint Research
Facilities
Customized
Farm
Equipment
Training
Facilities
Distributi
onMarketing
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Recommendation
Process-able variety
of crops
Skilled human
resource
Infrastructure
strengthening
Technology
Up gradation
Market Access to
farmers
Support Backward
Integration
A Dynamic Food
Process
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• Adding value is the process of changing or transforming a
product from its original state to a more valuable state that
is preferred in the market place.
Concluding remarks
• Greater opportunities for adding value to raw commodities
because of increased consumer demands .
• Producers involved with adding value can fetch a larger share
of the food dollar.
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• Adding value to farm products becomes vital for rural growth by
enhancing farm income and providing employment in processing
businesses
Concluding remarks
• It is not enough merely to increase and conserve the supply of
raw food.
• Growing population and rapid urbanization are expected to
continue.