Business Innovation to Combat Malnutrition Case Study Series 59433 v1 A School Feeding Program in Nigeria: Tetra Pak's Business and Development Goal Case A CSM Deputy Director 15 DECEMBER 2005. It had been a grueling The heavily fortified maize and soy-based bev- Dr. Aileen Ionescu-Somers trip. Bjorn Wille, program director of Tetra erage being distributed on the program ­ Nutri- prepared this case with Professor Ulrich Steger as Pak's African Food for Development Office Sip ­ was currently being imported from South a basis for class discussion and Mandla Mbau, Food for Development Africa (with considerable logistical complica- rather than to illustrate manager of Tetra Pak West Africa had started tions). Assuring local production was a huge either effective or ineffective out early. At 6:45 they flew from Lagos to Abuja political and economic challenge as it was handling of a business situation. using a local airline. In Abuja, they hit the road indispensable to sustainability of the program. and drove three hours to Lafia, the capital of In spite of strong support from H.E. Governor This case was commissioned Nasarawa, one of the 36 Nigerian states. They Dr. Abdullahi Adamu, government bureaucracy by the World Bank Institute had planned a meeting in Lafia that afternoon had slowed cash flow to the program, thus (WBI) with the support of the Global Alliance for Improved with His Excellency Alhaji (Dr) Abdullahi jeopardizing its continuity. Capacity-build- Nutrition (GAIN). Adamu, the Executive Governor of Nasarawa ing at the governmental and local NGO level State, to discuss the status of the school feeding was clearly needed. Communities were not all It was developed with input program in Nasarawa State, a state-supported following project protocols. While there were from the staffs of the Tetra Pak Food for Development initiative run in association with Tetra Pak. long-term business gains for Tetra Pak should a Office, the Government of Having met with the program management national program based on a beverage distrib- the State of Nasarawa in team in Lafia, they learned that their journey uted in Tetra Pak get off the ground, particu- Nigeria, WBI, GAIN, Helen was far from over. H.E. Governor Dr. Abdullahi larly on a national scale, the question of how far Keller International, the Solae Company and Good Hope Adamu, busy with many other issues, was held and how fast the company should or could go International. The contribution up at his home in Keffi. They decided to drive in Nigeria was very valid. The meeting would of all parties is gratefully there, another ninety-minute journey. Half go on until 23:00... acknowledged. way, H.E. Governor Dr. Abdullahi Adamu's aide called to confirm the meeting but insisted that they should not travel unescorted ­ it was Tetra Pak dangerous for two non-nationals to travel in rural Nigeria by themselves. They pursued their In 2005 Tetra Pak was a multibillion-dollar journey ­ it made eminently more sense to global company that developed, manufactured continue than to go back. They arrived at H.E. and marketed systems for processing, packag- Governor Dr. Abdullahi Adamu's home at 20:00, ing and distributing food. Part of the Tetra exhausted and not having eaten all day. Laval group, it was the world leader for the supply of carton packaging for milk, soup, fruit But the meeting was crucial. On the way, they juices and other liquids. The company was Eu na se had discussed the program and its challenges. founded in 1951 in Lund, Sweden by Ruben M C ro ge W a a pe m rit W Fo t De A an en ing in un ve wa ne d lo rd r o ati pm f on e 20 Copyright © 2006, IMD - International Institute for Management Development, Lausanne, Switzerland; WBI - World Bank Institute, Washington, DC, United States, and GAIN - Global Alliance for Improved Nutrition, Geneva, Switzerland. Not to be used or reproduced without written permission directly from IMD. fo nt The views expressed in this paper are those of the authors only. 07 r Rausing and Erik Wallenberg to focus on expansion mineral wealth (by 2005, petroleum accounted for into markets and technologies beyond fresh milk more than 80% of government revenues), indus- products. By September 1961, Rausing and Wallen- try associated with agriculture massively declined, berg had perfected their aseptic packaging concept, leaving Nigeria with little to no capacity to convert a technology that protected nutritional quality and agricultural raw material into value-added products. allowed ambient storage of products requiring For example, despite potential to produce dairy no preservatives. Aseptic processing involved very products locally and a strong milk-drinking culture, briefly heating products to extremely high tempera- Nigeria still imported powdered and tinned milk. tures (ultra-high temperature processing or UHT) Corruption and governmental inefficiency took in a closed system, and then rapidly force-cooling their toll. By 2005, Nigeria figured in UN records them to room temperature. In this way, products amongst the world's top twenty "most unlivable could remain fresh for months without refrigera- countries." Per capita GNI was only at a level of tion. It was a revolutionary concept. By 2005, Tetra $400 despite the fact that oil-rich countries were Pak had sales of 8.1 billion1 and more than 120 benefiting from record escalating oil prices. billion Tetra Pak packages were being distributed in over 165 markets, employing over 20,000 staff. The President of the Federal Republic of Nigeria, His Excellency Chief Olusegun Obasanjo GCFR, was a former military ruler who, in 1979, became Nigeria, a wealthy pauper the first African leader to voluntarily hand over power to civilian rule. H.E. President Olusegun Nigeria was the largest country on the African Obasanjo (GCFR) was persuaded by his supporters continent (refer to Exhibit 1 for a map of Nigeria). to run for election in 1999. He won overwhelmingly Its population of over 130 million people included and his first steps were to lead a public anti-cor- some 200 ethnic groups, 500 indigenous languages ruption campaign, implement economic reform, and two major religions (Muslim and Christian). and push for privatization, tax reform and more Nigeria became oil rich when the "black gold" was transparency. However, under his leadership, ethnic discovered in the Niger Delta in 1958. By the mid- and religious unrest also increased significantly. 1970s, Nigeria had the 33rd highest per capita in- Violent clashes between the army or police and come in the world. But from 1975 to 1999 the coun- local populations became commonplace, resulting try was plagued with a series of military regimes in multiple civilian deaths. Imposition of Islamic during which much oil revenue was squandered, law in some states underlined divisions and caused mainly owing to poor financial management. Spates migration of Christians. In 2003 H.E. President of massive governmental spending led to rapid rises Olusegun Obasanjo (GCFR) was re-elected in a in middle-class income accompanied by inevitable controversial election where international observers inflation. Because of corresponding increases in reported widespread ballot-rigging and intimida- food prices, agricultural production shifted away tion of voters. He was accused of targeting his anti- from traditional export cash crops (peanuts, cotton, corruption efforts against political opponents only. cocoa and oil palm products) to food crops. But The Nigerian constitution stipulated that presidents with the main industrial investment focus on its should not run for more than two terms of office. 1. 1 = $1.18, December 2005. 2 H.E. President Olusegun Obasanjo (GCFR) could implementation of a large school milk program in therefore not present himself for the 2007 elections, Indonesia. Wille explained this surprising combina- that is, unless he and his party made a risky bid for tion of tasks: constitutional change. Tetra Pak is Swedish and has a fairly informal family business culture and structure that encour- Malnutrition in Nigeria ages people to have more than one focus ­ while remaining accountable. According to UNICEF in 2005, malnutrition caused approximately 50% of child deaths worldwide, From 1996 to 1998, Tetra Pak had partnered with making the UN's Millennium Development Goal its largest Indonesian customer and a local NGO to to eradicate extreme poverty and hunger by 2015 set up a trial program in Indonesia involving some particularly ambitious. Unsurprisingly, with 66% 10,000 children The trial was a success and the pro- of Nigerians living on less than $1 per day, child gram was expanded in 1999 based on a donation of malnutrition had long since raised its ugly head 5,000 tons of non-fat dry powdered milk from the in the country. Nigeria was among the top twenty United States Department of Agriculture (USDA) countries in which 40% of under-five children were to the Indonesian government. Before long, the chronically malnourished, the prevalence of stunt- Susu Sekolah program, as it was called, was deliver- ing, underweight and wasting being 42%, 25% and ing milk in 200ml Tetra Brik Aseptic packages to 9%, respectively. This was mainly attributable to 500,000 Javan elementary school children three both poor dietary quality and parental ignorance times a week. In October 2000 Tetra Pak partnered of basic health and hygiene practices. This "hidden with Land O'Lakes Inc., a US dairy cooperative with hunger," as it was termed, insidiously led to anemia, NGO status, which had signed an agreement with and vitamin A, iron and zinc deficiency disorders. the USDA to implement the Susu Sekolah program Economic consequences were massive. Malnour- for a further two-year cycle and expand it beyond ished children were less likely to attend school, had Indonesia. There could be no doubt about the busi- diminished learning abilities and were more prone ness, economic and developmental benefits of the to infection, illness and premature death because program. Wille commented: of ordinary childhood diseases. Moreover, studies indicated that because of malnutrition, the average We launched programs in Vietnam, Bangladesh, national IQ in Nigeria had been reduced by 10­15%. Philippines, Pakistan and Uzbekistan. We trans- ferred know-how to local industry, combining phi- lanthropy and business interests. It was a win-win; Tetra Pak and School Feeding Programs the partnership gave us new business opportunities. Wille, an American-educated Norwegian, had been a senior finance manager in his early career, first The Tetra Pak Food for Development with ABB in Switzerland, subsequently moving Office to Singapore and then Indonesia. While in Indo- nesia, he started working with Tetra Pak as direc- In 2000 Tetra Pak's group management set up a tor of finance. In 1998 he became involved in the Global School Feeding Board and a School Feeding 3 Knowledge Center. Wille and Ulla Holm, a Tetra Tetra Pak packages to schools (refer to Exhibit 2 for Laval international director of financial services more details on this product). with experience of customer finance and dairy de- velopment, were active members of the Knowledge In November 2003 Wille and Brian Hinchcliffe, the Center. then managing director of Tetra Pak West Africa, were invited to make presentations to the Swed- In March 2002 Holm and Wille developed a pro- ish Ambassador to Nigeria and a Swedish trade posal with Kelly Boucher, School Feeding manager development delegation on the success of Nutri- for Tetra Pak East Mediterranean, for building on Sip as a product and also on the question of dairy the existing framework by establishing a Tetra Pak development in Nigeria. Convinced that school Food for Development Office (FfDO) to support feeding could be the first component in an inte- both school feeding and agricultural and dairy grated chain to promote much-needed sustainable development programs through public­private agricultural and industrial development in Nigeria partnerships while facilitating the provision of while delivering business benefits to Tetra Pak long Tetra Pak technology and market know-how to term, the ambassador asked Hinchcliffe to make local industry. The managers presented their similar presentations to H.E. President Olusegun ideas to group management and were sufficiently Obasanjo (GCFR) in February 2004. With a farming convincing. The FfDO was set up in May 2002 with background and agricultural development firmly Christer Ronnegard as global director. Holm took on his agenda, H.E. President Olusegun Obasanjo over when Ronnegard retired in January 2004. As (GCFR) also became convinced that a company she put it: such as Tetra Pak could help Nigeria to develop its dairy industry. At this very meeting, he created a Our school feeding and agricultural development National Dairy Development Committee (NDDC) programs go beyond ordinary business, without and appointed his Excellency Alhaji (Dr) Abdullahi being charity. They represent a long-term develop- Adamu, the Executive Governor of Nasarawa State, ment effort to improve the nutritional status of as chairman. The NDDC was asked to prepare a re- children while contributing to the development of port on the status of Nigerian milk production and the agricultural sector in developing countries, at its capacity to support a school milk program. the same time creating and developing new mar- kets for Tetra Pak. The results were sobering. In June 2004 the com- mittee reported that the extremely fragmented local Wille was appointed full time to develop the FfDO production could not cover school milk program for Africa at Tetra Pak South Africa. His first task requirements for even one state. It would clearly be was to develop a product for the commercial market a long time before Nigerian milk production could that could be used in South African school-feed- be "up to speed." Wille described what ensued: ing programs. He worked with a South African company, International Nutrition & Sport (INS), to We agreed that a product like Nutri-Sip using local develop Nutri-Sip, a heavily fortified maize and soy- Nigerian raw materials such as sorghum and cas- based drink. The drink was processed and packed sava could be developed and produced more rap- by another South African company called Good idly for distribution in schools until such time that Hope International (GHI) and delivered in aseptic milk would be available to replace this alternative. 4 However, a product of similar quality to Nutri-Sip time as Food for Development manager based at could not be produced locally in the short-term Tetra Pak West Africa in Lagos. Mbau would be the either. We agreed to jump-start a program based conduit for lending Tetra Pak's expert knowledge to on imported South African Nutri-Sip with the the program. Being African, Mbau was particularly idea that, as demand increased and the program excited about the potential of what Tetra Pak called grew, private sector investors could be attracted to the "agriculture to consumer" integrated model. fund production of a local brew. Essentially, if the program were successful, it was an all-round win-win for all concerned; the citizens H.E. President Olusegun Obasanjo (GCFR) request- of Nasarawa State, the government, Nigeria as a ed H.E. Governor Dr. Abdullahi Adamu to initiate a whole, and Tetra Pak. School feeding would boost pilot school feeding program to be entirely funded education in Nigeria. Enrollment would most likely and administered by the State of Nasarawa together go up, there would be reduced absenteeism and with the Federal Government with the objective of improved learning capacity since children would be gradually making school feeding available within more alert with improved cognitive skills. Farmers 10 years to 27 million schoolchildren across the would be happy, because the school feeding would country. H.E. Governor Dr. Abdullahi Adamu was create demand for raw materials and stimulate enthusiastic; local production would generate de- supply chain development. Building processing mand for locally produced foodstuffs which would facilities meant improving infrastructure which in increase much-needed employment and income turn would assure more food security, and improve for local farmers, industry and distributors. The livelihoods and employment prospects in commu- Nasarawa State Feeding Program Committee (NS- nities. All in all, Wille and Mbau were convinced FPC) was established, with Dr. Daniel Iya, a highly that the program could be a major contribution to qualified local doctor and university professor of building the Nigerian economy while reducing child surgery, as chairman. Tetra Pak West Africa and the malnutrition and poverty. (refer to Exhibit 3 for the FfDO were invited to act as technical advisors and development and rollout strategy for the model. to help state authorities set up an effective program infrastructure. Markus Huet, a FfDO consultant based in Malaysia with vast experience in the design of food programs But spending precious foreign exchange, albeit tem- in Asia, Africa and Eastern Europe was called upon. porarily, on an imported product with a develop- Huet traveled to Nigeria in November 2004, the ment goal was controversial politically and econom- first of some 12 visits up to the end of 2005, armed ically. While from these points of view (given H.E. with a generic plan for school feeding programs that Governor Dr. Abdullahi Adamu's support), it was included an extended six-month pilot project, plans more feasible to introduce imported Nutri-Sip in for donor interface, work on building community Nasarawa than in other much more populous states, commitment, and creation of management struc- it was clear that there would have to be a move to tures and tools to manage data. Wille, Mbau and local production by the end of 2005. Huet elaborated a team structure (refer to Exhibit 4 for the organigram and tasks to be covered) and In May 2004 Mandla Mbau, a 35-year-old South processes for a full-blown school feeding program African national with a Tetra Pak South Africa mar- in Nasarawa State. There were a lot of steps to fol- keting management background, was engaged full low to ensure sustainability of the value chain to 5 produce liquid nutritional drinks in Nigeria (refer Asia. After one or two visits to Nigeria, Wille started to Exhibit 5 for a graphic representation of the to fathom the major challenges ahead: necessary steps). I stayed at H.E. Governor Dr. Abdullahi Adamu's Wille's ambition was to replicate Tetra Pak's suc- VIP guest house. It was 40° by day with high hu- cessful Asian model of joining forces with local midity, 30° by night. There was often no electric- and international NGOs and other partners. Berry ity ­ government power cuts were common. You'd Magarinos, Partnerships Manager with GAIN, the wake up in the morning and there would be no Global Alliance for Improved Nutrition (a Swiss water. Government officials had a very different Foundation established in 2003 and supported by mindset to those I was used to. This was another the Bill and Melinda Gates Foundation2 amongst world. other donor sources), had started a quest for suit- able corporate partners to help achieve GAIN's The NSFPC nominated a full-time program man- objective, that of improving the nutritional status ager as well as logistics, community development of people at risk of vitamin and mineral deficiencies and financial managers supported by assistants. worldwide by using fortified foods. In November Spacious quarters in Lafia were given to this pro- 2004 Magarinos remarked: gram management team, and the program acquired a fleet of five new distribution vehicles bearing the Tetra Pak was seeking a partner to help them program logo. A distribution infrastructure and a monitor the health impact of Nutri-Sip. They had monitoring system to prevent diversion of the forti- commissioned an efficacy study in South Africa fied product were conceived. Warehouses and local that was not empirically sound in that there storage rooms were identified and rehabilitated. But was no control group. They lacked nutritional Huet noted: expertise and GAIN could help them. We were also intrigued with two aspects of the proposed The government's main interest was in exploring program. Stimulating local production and local and expanding local production and in launch- investments was an essential part of the sustain- ing an accelerated plan to extend the program by ability of the model and as such was an innovative 10,000 children per week. With no time to initiate approach. Also, apart from the fact that Nutri-Sip the preparatory work, my plan went out the as a school feeding solution provides vitamins and window. The pilot project was whittled down to a minerals in a way that traditional school feed- bare month. Instead of going through the requisite ing could not, the product cannot spoil easily, is exercises with the community to actually demon- hygienic and is a good solution for hard-to-reach strate the commitment we expected, we settled for rural areas. their verbal commitment. A memorandum of understanding (MoU) was Tetra Pak had agreed with the state government that signed between Nasarawa State Government and the program would be launched on 17 January 2005. Tetra Pak on 31 November 2004. But Africa was not But Wille described the first problems encountered: 2. The Bill and Melinda Gates Foundation is dedicated to bringing innovations in health and learning to the global community (see http://www.gatesfoundation.org for more details). 6 To start rolling out the program, we also had to start one of the best days he had ever had as a Tetra Pak production of Nutri-Sip in South Africa. It took employee. four months to issue the first LoC (letter of credit) ­ literally ages in business terms. Containerizing the Some months into implementation, the program trucks and preparing them for distribution took six continued to have major distribution problems. months. Nobody had envisaged such delays. State bureaucracy weighed heavily; money was In June 2005 Wille found a nutritional design part- always an issue. Wille remarked: ner to develop a tailor-made product for Nigeria; The state had to sign off on all disbursements. the Solae Company, which in turn belonged to the LoCs remained problematic and the program team DuPont Group (refer to Exhibit 6 for a graphic lacked cohesion and drive. representation of the strategic partnership struc- ture). Solae had been supplying a protein blend to The bureaucracy did not stop there. At the best of GHI for the Nutri-Sip product. By September 2005, times, imported products were a headache for com- Kobus De Klerk, Africa area director for the Solae panies in Nigeria. Containers with the Nutri-Sip Company, had already elaborated a product that product often got "stuck" in Lagos's port. The gov- could be produced using Nigerian raw materials; ernment delayed in making funds available to pay cassava, sorghum, maize, vegetable oil and sugar. He clearing agents. Used to such delays, program staff commented: tended to be relatively complacent; hence products could accumulate for weeks in the port without The supply chain of raw materials is very informal action, with the resulting storage charges, taxes and in Nigeria. Essentially farm production gets sold container rental costs pushing up the Nutri-Sip unit into open trade and there are no formal distribu- cost daily. tion channels. Our value-added is our under- standing of how to set up a distribution channel. A Brian McGuinness, MD of Tetra Pak West Africa lot of product design is therefore spent relationship- since September 2004, supported the program building and working on supply chain manage- fully ­ it was a great opportunity for both Nigeria ment. and Tetra Pak, a potential "win-win" for all con- cerned ­ but he pointed out: H.E. President Olusegun Obasanjo (GCFR) finally launched the School Feeding Program at Laminga To sustain this model, we need to attract invest- Primary School on 27th September 2005. The at- ment so as to involve local industry in the loop. We mosphere at the launch was buoyant and optimistic. have to find the case for financial sustainability Approximately 10,000 people attended and it was and return production to the local economy. even broadcast live on national television. Holm commented: Although Mbau was frustrated about lack of prog- ress in Nasarawa, he still felt that Tetra Pak had been In my view, the launch of the program was prob- making good headway under very difficult circum- ably one of the best life experiences of most people stances: that would be involved in its implementation. The Cluster Vice President of Tetra Pak for Sub-Saha- Tetra Pak works on targets and makes things ran Africa informed me that it was undoubtedly happen. If you are lazy, you won't get a lot done 7 in this country. There has to be personal sacrifice target had to be revised downwards to an increase and involvement, commitment and unyielding of 3,000 per week. A total of 75,000 children were resolve. But without H.E. Governor Dr. Abdullahi on the program by the end of 2005, and it was still Adamu's support, the program is dead. He is a challenging to assure continuity (refer to Exhibit 7 man of his word. He has followed through almost for photos of Nutri-Sip distribution at a school). Iya obsessively. He wants everything to happen quickly. commented: He works with integrity and for this reason we can work with him. But will he be out of the govern- We need to move away from fire fighting, when the ment by 2007? availability of stock in warehouses is so low that it jeopardizes the program and managers have to The program management team spent substantial spend days physically going to Lagos to negotiate amounts of time managing logistics related to release of the goods. product delivery. All were aware that more time was needed for focus on community education about Wille spent one week per month at the project site health benefits of the supplement and even general in Nigeria, using work quarters within a govern- hygiene. There was some initial reticence among ment compound where often there was no access certain families in the communities about allow- to facilities such as water or electricity. Tetra Pak ing their children to take what was regarded as a executives undertook basic tasks such as stock- "foreign" drink; locals that were suspicious about the ing the generator, which was required because of benefits. The community manager initially spent government-authorized power cuts to economize most of her time dispelling such misgivings. Also, it on electricity in Lafia. Wille and Huet spent many was important that parents would see the drink as a hours teaching the management team how to supplement and not a meal replacement, a real risk implement the program and overseeing the writing given the level of poverty in these rural environ- of a Tetra Pak school feeding program manual, in- ments. Moreover, in order to properly benefit from cluding a template of checklists on how to run such the nutritious drink, every child had to be "de- a program. wormed" before joining the program, since infec- tion with ringworm (usually as a result of playing GAIN and Tetra Pak signed an MoU in October barefoot in stagnant water) was rampant. Therefore, 2005 defining a broad area for collaboration includ- raising parental awareness of precautions to take ing joint activities in Nigeria. GAIN was to sponsor against reinfection (such as ensuring that their a health impact study to start by March 2006. Before children wore sandals at all times) was also essential. the program started, the schools were briefed on the The importance of raising awareness on such issues need to keep data per student up to date for the du- could not be underestimated. ration of the feeding program. When the program got off the ground, 40 monitors were sent to schools The original plan was to increase the number of to collect consumption data. Some were refused ac- children on the program at a rate of 10,000 per cess to the students and data. Huet commented: week, to reach a distribution of 150,000 by end of 2005. The program management team had great In December 2005 I made it clear to H.E. Gover- difficulty keeping up with this pace given difficul- nor Dr. Abdullahi Adamu that, if communities ties with cash flow and logistics, and the initial ignore program protocols, they should be removed 8 from the program. My experience is that this is the for Development work in Nigeria? If so, what steps only way things can work with communities. But needed to be taken? H.E. Governor Dr. Abdullahi Adamu was reticent about doing this for political reasons. In 2005, 60,000 units of de-worming agent were delivered to the program. By the end of the year, not all of the units could be accounted for by the pro- gram staff. Wille and Mbau were very keen to make sure that the program was watertight and totally ac- countable; they decided to raise this issue with H.E. Governor Dr. Abdullahi Adamu. Mbau continued to push for localization of the product. He had little time to follow up on Huet's intense capacity-building visits. The original aim had been to start production of the first batch of "Nigerian Nutri-Sip" by June 2006. By the end of 2005, the move to localization was not progressing at the desired level. Back in Keffi, the challenge Wille and Mbau had another hour or so to wait before H.E. Governor Dr. Abdullahi Adamu would be free to talk. They decided to mainly focus on the potential waste of state money should the program not get more stable governmental support. They had worked on a game plan for 2006 that they felt would jump-start the program and put it on a more sustainable footing. In spite of potential long-term business advantages, had it been overly risky to embark on such a difficult challenge us- ing a brand new business model in a country as complex as Nigeria and on such a sensitive issue as child nutrition? What solutions could they come up with in order to alleviate the current pressures on the program management team and put it on a more secure footing? Was there a need to funda- mentally review the current structure of their Food 9 Exhibit 1. Maps of Nigeria and locations of Lagos, Abuja and Nasarawa State Sources: http://www.mbendi.co.za/cyngmps2.gif, http://worldcountries.info/ Maps/Region/Africa-450-Nigeria.jpg 10 Exhibit 2. Description of the Nutri-Sip product For disaster relief and feeding programs, ready to Minerals included in the formulation are Amino consume, highly fortified food matrixes that contain Acid Chelated Minerals scientifically proven peer the 6 (six) essential nutrients to sustain life in a reviewed, that have the highest bioavailability, well moderate healthy condition should be administered. regulated and absorbed in tact by the body with no Nutri-Sip is a meal supplement that provides the antagonism and mutual interference at receptor targeted population with a well-balanced nutri- sites for minerals in the Jejunum (other Inorganic fied drink, containing Protein, Carbohydrates, Fats, Minerals are absorbed in the Duodenum with an- Minerals, vitamins and Water (the six essential tagonism and interference at receptor sites) nutrients to sustain life) assisting in building up the immune system of the body, and providing the All vitamin's added in the formulation are water targeted population with essential micronutrients to soluble and do not degrade over time as a result of meet the daily nutrient deficit intake, that assists in contact with the Amino Acid Chelated Minerals, as warding off opportunistic infection and diseases. would be the case with any inorganic mineral. Unlike the provision of supply of staple foods to The targeted population for Nutri-Sip is the most prevent starvation to selected targeted population vulnerable, toddlers, children, pregnant and lactat- groups, who will still be prone to infection of op- ing woman suffering from malnutrition, caused portunistic diseases, primarily as a result of these by a host of factors, namely; poverty, drought in foods that have to be reconstituted with water. rural areas, natural disasters, war conflict, displaced Quality versus quantity has to be evaluated when persons etc addressing requirements of population groups in need of nutrient dense food matrixes. The main advantage of the bio engineered formula- tion of Nutri-Sip is to reduce the risk of reconstitut- Nutri-Sip is processed, utilizing state of the art, ing solid foods that are semi cooked with contami- aseptic manufacturing lines at Ultra High Tempera- nated water. Nutri-Sip is ready to drink, will prevent ture (Tetrapak) to ensure a shelf life of 12 months and correct nutrient imbalances and reduce the without degradation of the nutrient content, at risk of contracting preventable and opportunistic ambient temperatures worldwide. diseases. In addition, a Bioflavonoid vitamin P with scientifi- Logistics and storage is extremely cost effective cally proven anti - viral, pathogen, bacteria, fungi and when evaluating the cost dose response of a serving mould, totally organic and non toxic is included in per person a day, in their health status. In the event the fortified formulation to assist the body in increas- of persons consuming more than 1 (one) serving ing the population of good intestinal flora, decreasing per day, Nutri-Sip will not cause any harm, as the the risk of ditherer and proven to have a kill ratio of selected nutrients are well regulated and absorbed 99.999% against e-coli strains (including a host of by the body, secreting any nutrient overages. other pathogens and bacteria) and assisting with the ------------------------ uptake percentage of the added nutrients, reducing Source: Good Hope International, South Africa the risk of diarrhea, respiratory infection etc 11 Exhibit 3. Integrated local product framework--from development to implementation Development strategy Major advantages of developing an integrated "from · Supplychaindevelopmentleadstolocalinfra- agriculture to consumer" model: structure development · Localfoodprocessinginfrastructureenables · Schoolfeedingisusedasacatalystforagricul- food security, livelihood and employment ture and economic development by creating · Thesuccessofallofthesefactorsallowsfor demand and stimulating supply chain develop- industry development which translates to eco- ment nomic empowerment overall · Nutritionisusedtoimprovehealthandeduca- · Thecreationofacommercialmarketleadsto tion (increased cognitive development and en- growth and expansion rollment, more education for girls, completed education cycles) Implementation strategy Source: Company information. 12 Exhibit 4. Program management structure: School Feeding Program Nigeria Key functions of the managers: · Budgetingandfinancialmonitoring · Sensitizationsofparents,teachers,localgov- · Letterofcreditfollow-up ernment authorities, traditional leaders, etc. · Liaisingwithclearingagents,portauthorities · Programmonitoring(distributionandcon- · Stockmanagement sumption tracking tools) · Organizingthede-wormingprogram · Progressreporting/feedbacktokeystakehold- · Programplanningandimplementation ers · Fieldvisitsandtrainingworkshops Source: Company information. 13 Exhibit 5. Steps required for the sustainability of the value chain producing liquid nutritional drinks in Nigeria Source: Company information. Exhibit 6. Strategic partnership structure Source: Company information. 14 Exhibit 7. Children receiving Nutri-Sip in a school in Lafia, Nasarawa State, Nigeria Source: Mandla Mbau, Tetra Pak. 15